The Expansion of Europe in the 18th C
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Transcript The Expansion of Europe in the 18th C
Global Economy & Atlantic Trade
Chapter 19
Overview
The 18th C saw enormous changes in the lives of
ordinary people, with agricultural improvements
and new patterns of manufacturing, a rapid rise in
population and increasing prosperity, particularly in
the Atlantic countries involved in colonization and
trade in Asia, Africa and the Americas. These
widespread economic changes set the stage for the
Industrial Revolution and are comparable in their
significance to the economic and social expansion in
the 11th & 12th C that paved the way for the
Renaissance.
KEY CONCEPTS
Colonial markets provided ready consumers of European
goods, benefiting manufacturing interests, both individuals and
states. Europeans competed with each other for control over
these colonial markets and adopted mercantilism to improve
their economies. The Atlantic states, particularly England,
France and Holland – grew wealthy and increasingly
competitive with each other.
Adam Smith developed a new economic theory called
economic liberalism that opposed mercantilism for its
hindrance of competition. His theory held that governments
should limit themselves to a protective function and leave the
economy free to operate. Such laissez-faire politics would
promote social harmony and the general welfare.
World Trade
England – under the Stuarts & the Commonwealth)
Advanced position – adoption of mercantilism in 17thC
Mercantilism - Government involvement in the economy was necessary to
increase the amount of gold - by decreasing imports and increasing
exports
Governments encouraged industry with tax subsidies and the granting of
monopolies.
Colonists required to buy almost all goods from England
Cromwell passed the 1st Navigation Act 1651
All goods coming into Scotland & England be brought in by British ships
Goal – make Britain the dominant maritime power by strengthening the
British shipping industry & outmaneuvering its competition
17th C chief competitor – Holland
3 wars with the Dutch in the mid-17th C
Won New Amsterdam in 1664 – now New York
Damaged Dutch shipping & trade
England fights for world
trade
New competition – France
Advantages Dutch didn’t have:
Large population
Alliance with Spain
Strongest military power
Substantial resources
Highly regulated colonies
England V France
Wars 1700-1763
War of Spanish Succession
Threat to the balance of power in Eur
Treaty of Utrecht
France lost Newfoundland, Nova Scotia & Hudson Bay
Britain won control of African slave trade – the asiento
War of Austrian Succession
Britain helped Austria’s Maria Theresa hold her throne
Seven Years’ War (French and Indian War) – most decisive
Fought on both European and American continents
British naval power defeated the French forces in Quebec
Treaty of Paris of 1763
France lost Quebec and possessions east of the Mississippi, &
holdings in India to England and Louisiana to Spain
Spain lost Florida to England
England
Supreme on the seas
Basis for its empire in India & Canada, expanded
American colonies
Trade boomed for Eng
London became Europe’s riches & largest city
Trade in manufactured goods, slave & sugar
By the end of the 18th C, London had become the largest city in
Europe. It rebuilt itself after the Great Fire of 1666, moving west
with townhouses built around squares
THE ATLANTIC SLAVE TRADE
Key element in the expansion of Europe and the Atlantic economic
system
More than ½ of the 11.7 million Africans brought to the Americas arrived
in the 18th C
Up to 80,000 a year
Slaves were vital to the success of the Amer. Econ
Produced crucial items like sugar & coffee
Slave trade
Shore trading
Local traders supplied slaves
Small-scale slave raids, kidnapping, punishment for crimes
African traders used wealth to buy European arms
One of the impacts of the Slave trade on African states was
to encourage warfare among Africans.
Slavery In Britain
A slave who ran away was supported by the law
Free and escaped black – some whom intermarried
with whites
In 1807 Parliament abolished the slave trade – 1st
large scale peaceful movement for social change
The height of the slave trade was 1780s – spanning
about 30 years
AP TIP
The US Constitution of 1787 allowed for the importation of slaves
until 1808, as a compromise between those opposed to slavery
and the slave holding states. Slavery was abolished in the British
Empire in 1833 and in the French Empire in 1848: it continued in
Brazil until the 1880s.
COLONIAL LATIN AMERICA
Phillip V – Bourbon grandson of Louis XIV
Capable leader – lead Spain’s recovery
Enlarged empire in the Americas with the acquisition of Louisiana
Silver mines – produced ½ of the world’s silver
Spanish colonial social/econ
Creoles – became wealthy consumers of Euro manufactured goods
Depended on the Native Amer. for labor
1st as slaves – serf in new system debt peonage
People worked to pay off debts (almost required to acquire)
Mestizos – mixed Spanish and Indian blood
Mestizos made about 30% of pop – Creoles about 20% - Blacks much
smaller %
Casta Paintings – demonstrated the whites fascination by issues of race –
portrayed a variety of racial mixtures
Spain’s South American colonies were similar to Britain’s
New England in that African slavery was relatively
uncommon. In Argentina, Chile, and Peru, the most
important Spanish colonies, most of the laborers were
native people. There was relatively little African slavery
there or in New England, where there was little plantation
agriculture.
TRADE AND EMPIRE IN ASIA
The Dutch- The Dutch East India Company
Importers of Spice Island goods
Did not diversify and suffered when the Euro spice market
declined
England – British East India Company
Focused on India
Won trade enterprises from Mughal emperor
Engaged in local politics
Competed with the French
Seven Years’ War British won French territories in India
The next year they defeated the Mughal emperor
Kept him on the throne – in name only
Robert Clive – governor had power
“Jewel in the Crown” of the British Empire
Order of world trade domination
in Asia from the 16th c to 18th C
Portugal
Holland
France
Britain
ECONOMIC LIBERALISM
New doctrine: laissez-faire, economic liberalism or free enterprise
Adam Smith – Scottish Enlightenment philosopher
The Wealth of Nations (1776) - Established basis of modern capitalism
Free competition – preferable to mercantilist monopolies
Offers the greatest benefits to the society as a whole
Protects the consumer and offering opportunities to individuals
Governments should limit themselves to 3 tasks
Military defense
Maintenance of public order and justice
Public works
Do not intervene in the economy
Free enterprise would create social harmony & raise the standard of living for all
Smith did not support subsistence wages or the division of labor that was part of
industrialization
Argued workers should be paid decently and be protected by the government
AP TIP
Adam Smith searched for fundamental laws; the law of
supply and demand (which required free operation. He
believed that if every businessperson, pursued his
“enlightened self-interest in an atmosphere of free
competition, it would produce the greatest quantity of goods
at the highest quality and lowest prices. An “invisible hand”
would act as a regulator if needed. Mercantilism protects the
manufacturer, but the chief beneficiary of laissez-faire is the
consumer. Although the US and many other states claim
their economies are laissez-faire in fact government
intervention in the economy never disappeared.
Adam Smith
Invisible Hand
Modern Capitalism