Transcript Unit 2 - Cloudfront.net

Unit 2: Subunit B
th
18 c. European Expansion
1650-1800
Intro Question
• Do you believe there is
a way out of poverty?
• How do you break this
cycle of poverty?
18th c. European ECONOMIC HISTORY.
Essential Questions:
How did Europe expand in the 18th century?
… internal growth?
(rising food production, population boom,
expansion of industry)
… external growth?
(global trade, empire building)
I. AGRICULTURAL
REVOLUTION
Objectives
1. Compare and contrast farming methods and the
supply of food before and after the Agricultural
Revolution.
2. Explain the factors that caused the Low
Countries and England to adopt the new
methods of the Agricultural Revolution first.
17th c. Economy: Agrarian
• 80% of W. Europeans
– Rest were nobles,
clergy
– even more in E. Europe
• 90-95%
• Open field system
Agriculture before 1650:
The Open-Field System
• What it looked like:
– open fields, cut into strips for each family
– no fences
– common lands for pasturing animals
Smith
Walsh
Common
Land
Wilson
Miller
Carder
Carroll
Agriculture before 1650:
The Open-Field System
• Problems:
– soil exhaustion  fields lie fallow
– low output + periods of famine
Famine Foods
Grass and Bark……….
Dandelions……………….
Chestnuts………………….
Agricultural Revolution
(ca 1650-1850)
• What: elimination of the fallow
• How:
(1) crop rotationCharles
Townshed
(2) enclosure
Agricultural Revolution
(ca 1650-1850)
• Consequences:
– MUCH more food
• Much more profits to go
to agriculture &
manufacturing
– rise of market-oriented
estate agriculture
• Formed societies to
discuss agriculture
– proletarianization
(landless peasants)
• Enclosures
Between 1600 and 1900, England’s wheat
output tripled. Overall, by 1870 English
farmers were producing 300% more food than
in 1700 with just 14% more labor!
West vs. East
• Low Countries 1st – why:
• The farther east the worst
the conditions
– densely populated
– growth of urban areas
• Prisoners of tradition
• England 2nd – students of the Dutch
– Refused to eat or plant certain
foods
– Cornelius Vermuyden- drainage
• Tomatoes (peasants believed were
– Jethro Tull= seed drill, horses for
poison)
• Potatoes( Russian’s believed they
plowing, selective breeding
were apples of devil)
– interest in increasing farm output
• Content to sit back and live
(= more surpluses)
from revenue extracted from
– Enclosures= agricultural
peasants
individualism
• Serfdom still existed (not
interested in peasant
innovation
Results of Revolution
Building an Economy
• Population Explosion • Marriage and
Family
• Cottage Industry
• Building the Atlantic • Children &
Education
Economy
• Food & Medical
Practice
• Religion and
Popular Culture
Teach Us
• Presentation of Information
• The presentation FORMAT
can vary: you may use the
– Read section of book
whiteboard, the overhead
concerning information
projector, PowerPoint, or
– The presentation CONTENT
other media
should address all of the
– Cannot be more than
guiding questions.
10 minutes
• Don’t just answer the
– Extra credit: create a
questions. Present it in a
handout to give to your
way that goes over all the
peers that helps explain
questions.
your assigned topic
Journal # 1
What do you observe about this political cartoon? What does it suggest about
Government intervention? When do you believe government should intervene in the
economy? When do you believe government should intervene in the running of
businesses?
Commercials
• For each presentation write the following
•
•
•
•
•
What is it?
Who came up with the idea?
What is it’s purpose?
How does it work?
How is it going to impact your industry (agricultural or
industry).
II. POPULATION EXPLOSION
What accounted for the dramatic population
increase in Europe during the 18th century?
Population Patterns up to 1700
• irregular cyclical pattern of slow growth
– Up and down
• factors that held down population growth:
– Famine (from open system)
– Disease (Black plague)
– War (100 years war, 30 years war (religious wars)
– Poverty (poor live shorter lives)
th
18
c. Population Explosion
• Why: decline in mortality …
– famine: new canals and roads
enabled food transport; new
foods (potato)
– disease: bubonic plague
disappeared; improved
sanitation
– Waste removal
• Careful when burying dead
– war: less destructive
•
•
•
•
Armies more professional
Discipline
Supply
New battlegrounds (New world)
III. COTTAGE INDUSTRY & URBAN
GUILDS
Discuss the development of cottage
industry and its impact on rural life and
economy.
Describe the features of the guild
system, explain how it evolved in the
18th century, and explain why the guild
system eventually was replaced.
Cottage Industry
• manufacturing with hand tools in peasant homes
Cottage Industry:
The Putting-Out System
• What: merchant capitalist “put out” raw
materials to cottage workers, who returned
finished products to the merchant
• Competitive advantages (over guilds):
– low wages
– no regulation = experimentation + variety of
goods
Cottage Industry
• 1st in: England, textile industry
• Hand spinning: largest source of female
employment
• family enterprise
• spinners can’t keep up with weavers 
“spinsters”
• conflict b/t workers & merchant-capitalists
– erratic pace
Journal #2
• Who’s at fault?
• The drug dealer or the
drug user?
• Who’s worse?
•
Urban Guilds
• Merchants & artisans
organized into corporate
guilds by goods sold or
produced
• elitist & monopolistic:
– restricted membership:
men, nepotism, costly
– exclusive rights to
produce certain goods
– access to limited raw
materials
Guild flags, etching from 1815.
Tour de France
• Journeymen perfected
skills by stopping in a
number of cities over a
period of several years
– Worked under many
masters
– Where the name
originated
Urban Guilds
• not open to experimentation
• 18th c.  openness to women (ex.
dressmaking)
• lost power, late 18th c. – mid-19th c. (FR / rise
of free market)
“Industrious Revolution”
• social/econ of late 17th-early 18th c.
– wage work
–  leisure time
• new pattern = foundation for IR (1780)
• Debate over consequences … life better or
worse for:
– the poor?
– women?
“Industrious Revolution”
•
•
•
•
•
•
•
•
•
Between 1660-1760: 210 new invention patents
Between 1760-1800: 976 new invention patents
Steam Engine
Fertilizer
Iron Plow
Flying shuttle
Spinning Jenny
Water frame
Water mill
IV. BUILDING THE GLOBAL
ECONOMY
Objectives
1. Explain how Britain became the dominant European
power in the colonial world.
2. Describe the development of slavery and its impact on the
economy in the Americas.
3. Explain how Spain recovered in the 18th century after its
17th-century decline.
4. Describe the hierarchy of Spanish colonial society.
5. Identify European colonies in Asia.
6. Explain Adam Smith’s economic theory, and contrast it
with mercantilism.
18th c. Commercial Leader:
BRITAIN!!!
Why Britain?
• Britain's economic advantage explains why manufacturing
revolution began there
• Unified politically
• Same language
• No internal tariffs (France, Italy, Germany had tariffs)
• Weights & measurements standardized in Britain
• Colonies of Great Britain provided raw materials and new markets
• Improved roads/turnpikes (toll roads)
• Government offered businessmen more assistance
– Royal navy protected merchant fleets (Navigation acts)
– Low taxes on business
• Government rarely interfered in operations of economy
Britain did have rivals:
•Dutch (dominated 17th century)
•French
•Spanish
So how did Britain take the lead?
Success in war – economic & military.
England/Dutch Vs. The Rest of Europe
•England had Iron
Plow
•Draft animals
•Enclosures
•Crop rotation
•Selective breeding
• paper money
•Great
banking/credit
• Spain, Italy, Southern
France
– had wooden plow that
barley scratched surface
– Peasants lacked farm &
draft animals= no
fertilizer, meat, milk
– Agricultural tradition:
land divided into small
strips & slash/burn
– Suspicious of paper
money/ hard obtaining
credit
Wars
1. Navigation Acts (1651-1663)
2. Anglo-Dutch Wars (1652-1674)
3. War of the Spanish Succession
(1701-1713)
4. War of the Austrian Succession
(1740-1748)
5. Seven Years’ War (1756-1763)
1. Navigation Acts (1651-1663)
• econ. warfare:
– GB imports must be
carried on GB ships (or on
ships of country
producing the goods)
– GB colonies must ship
goods on GB (or US) ships
+ buy goods from GB
• Outcome: beat out Dutch
2. Anglo-Dutch Wars (1652-1674)
• 3 wars
• Outcome: war
coupled w/ Nav.
Acts, Dutch
commerce 
Dutch colony of New Amsterdam. Britain
seized it and renamed it “New York.”
3. War of the Spanish Succession
(1701-1713)
• Charles II (last of Habsburg)
– Dies w/o heir
– Gives it to Philip of Anjou/Philip the
V
• (2nd eldest grandson of Louis XIV
of France
• Cause: threat of French/Spanish union
– Threat of Balance of power in
Europe
• France vs. Grand Alliance (GB, Dutch,
Austria, Prussia)
– Counter France growing dominance
3. War of the Spanish Succession
(1701-1713)
• Grand Alliance won!
• Peace of Utrecht:
– Fr/Sp could not be united
– France lost Amer. colonies to
GB
– Spain lost land to Austria &
gives control of slave trade to
GB
– HRE looses Spain (no longer
Habsburg)
4. War of the Austrian Succession (1740-1748)
• Charles VI dies w/out heir
– Pragmatic sanction allows
Maria Theresa to throne
• Cause: Prussia (Fred the
Great) took Silesia from
Austria (Maria Theresa)
– Austria, Russia, Sweden,
Denmark, Britain
• fearing expansion of Prussia
• Britain wanted to protect
Hanover from Prussia
– Prussia, France, Spain
• France & Spain wanted
land & influence
4. War of the Austrian Succession
(1740-1748)
• Came to include
Anglo-French conflicts
in India & N. America
• Outcome:
GB’s King George II at Battle of Dettingen
– defeated the French. GB fought on
Austria’s side.
– Treaty of Aix-LaChapelle ended war
– Prussian victory
– no land in N. America
5. Seven Years’ War (1756-1763)
• Cause: MT wanted
Silesia back
• Alliances switch
– France, Austria,
Russia
• Alarmed by
Prussian power
– Prussia, Britain
• Britain to get
back at France
• France vs. Britain
over colonies (called
French & Indian War)
– War against
Catholics for
Britons
General James Wolfe @ Quebec
5. Seven Years’ War (1756-1763)
• Indecisive in Europe
– Prussia keeps Silesia
• British victory in
colonies
• Treaty of Paris 1763 :
– France & Spain lost
land in
N.Amer/Canada. &
India to GB
• Spain ceded Florida
to Britain
Theme: Land and Trade Monopolization
Outcome: Britain realized goal of monopolizing a
vast trading and colonial empire
Meanwhile
IN THE COLONIES…
IN THE COLONIES….
THE AMERICAS
Atlantic Slave Trade
(18th c. height)
Atlantic Slave Trade
• Forced Migration of
millions of Africans
– 15% died in transit
• plantation agriculture:
sugar, coffee, tobacco,
rice, cotton
• 1700: GB becomes leader
• 1770s-80s: GB abolition
campaign
• 1807: Parliament abolished
Great Britain slave trade
Middle Passage
Who’s Worse?
The Dealer or the User?
• African dealers would traders and slaves to British
Ships
– African Merchants and rulers who controlled exports
profited from greater demand for slaves
• With new wealth they gained access to European and colonial
goods (GUNS)
• New wealth was only for Merchants and Rulers
• Wars among African states increased
– To obtain salable captives
– Led to population of Africa stagnating or declining during
18th century
Spanish Revival
After its height in the 16th c., and a drastic fall in
the 17th, Spain came back in the 18th!
• Causes:
– better leadership: Philip V
(r. 1700-1746)
–From War of Spanish
Succession
– reforming ministers
–Centralization of state
Spanish Revival
• Signs of revival: colonies benefit!
– better defense
– Laws & Language established
– expansion (ex. Louisiana, CA)
– silver mining recovers
– new class of wealthy Creoles
Spanish Colonial Society
• Creole: Spanish blood, born in
America
• mestizo: mixed Spanish/Indian
• debt peonage:
– 17th c. labor system
– serfdom – owner keeps
Indians in bondage by
advancing pay
IN THE COLONIES….
ASIA
Portugal (16th c.)
Outposts in Indian Ocean trading world
Dutch Republic (17th c.)
Indonesia
France
Key
light blue = 1st empire of 1600s-1700s
dark blue = 2nd empire, after 1830
India
Britain
(India, 18th c.)
ECONOMIC SYSTEMS
Why does it matter? What difference does it make?
Different Economic Systems
Mercantilism
• 17th-18th c.
• gov’t. regulation
• goal: ↑ gold reserves …
exports > imports
Capitalism
• late 18th c. forward
• gov’t. stays out of economy
Adam Smith,
The Wealth of Nations (1776)
• capitalism / free market / free trade /
economic liberalism / laissez-faire
• 3 duties of gov’t.:
1. defense (military)
2. civil order (police, courts)
3. public works
Adam Smith’s “invisible hand”
“By preferring the support of domestic to that of foreign
industry, he intends only his own security; and by directing
that industry in such a manner as its produce may be of the
greatest value, he intends only his own gain, and he is in
this, as in many other cases, led by an invisible hand to
promote an end which was no part of his intention. Nor is it
always the worse for the society that it was no part of it. By
pursuing his own interest he frequently promotes that of
the society more effectually than when he really intends to
promote it. I have never known much good done by those
who affected to trade for the public good.”
Mercantilism vs. Capitalism
• Read Defining and Defending Mercantilism (1664)
– Thomas Mun, England’s Treasure by Foreign Trade
• Read Critiquing Mercantilism
– Adam Smith, The Wealth of Nations (1976)
• Questions to answer:
– Compare and contrast the ideas for each of the readings
– what would motivate individuals to work in each of the
economic systems?
– Which system do you believe would work best? Explain
your answer