16.2 & 16.3 Powerpoints and

NotesEarl Warren Middle School

Spring 2011

A New Economy

As European powers began to colonize other parts of the world, new economic systems began to develop. The first two systems were Mercantilism and Balance of Trade.

Mercantilism-A system where a government controls the economies in a country and colony to make their countries richer.

Balance of Trade- the relationship between goods exported and imported in a country.

Mercantilism

Balance of Trade

Countries have a positive balance of trade if they export more than they import.

Cottage Industries

Cottage Industries was a system where a family would work for a company making parts in their homes.

For example: A businessperson has the individual parts to build toys,

but needs someone to make toys for them. They hire families to build toys for them. The families

work out of their homes, putting parts together. The businessperson then takes the finished products

for a large profit.

New Trading Patterns

Triangular Trade was the system of trade between Europe, Africa, and the Americas.

This system traded raw materials, finished products, and slaves to different parts of the world.

Raw materials are sold to “mother countries” in Europe.

Finished goods are sent back to the new world.

Items like guns, iron, and cloth are sold in Africa

Slaves are sent from Africa to the new world.

The Atlantic Slave Trade.

From 1600-1800, between 4 and 10 million people were forcefully taken from Africa to work on colonies in the Americas.

Although slavery had existed in some form on every continent on earth previously, this particular form of slavery was based on race alone.

Horrible conditions on the trip across the Atlantic killed millions of enslaved Africans before they even got to the new world.

Atlantic Slave Trade

The Actual Journey

Packing a Slave Ship

Power Shifts in Europe

While Spain and Portugal were still relying on mercantilism to make profits, other countries began to move to other parts of the world to make money.

England-English traders moved to ports in India and China, and began to move goods into these cities.

The Dutch moved into parts of Africa and Asia. By expanding trade to new markets, they were able to sell more goods and make more money.

Banking

Because of an increase in trade and money, the Dutch needed a place to keep their money.

Jews who lived in the Netherlands had already established several banks for themselves, as other groups refused to do business with them, many went into banking.

Jewish bankers loaned money to companies and held their money safe. They also developed exchange rates (how much money is worth in a different countries’ currency.

They were so successful with this method that England invited Dutch Jews to England and set-up banks.

Market Economies

Before the age of exploration, most people had very little money to purchase additional items.

Food was easier to grow and therefore cheaper.

As the population grew, people needed more goods.

Colonies also needed goods from their home countries.

This new demand for goods led to a new type of economies.

The growth of Capitalism

A Market Economy Develops

Since new businesses were popping up, people could for the first time choose where they went.

This system is called a market economy. In this system, individuals decide what goods or services they will buy.

Take a moment and think about what your family buys, and the choices they make: What is the discussion when your family goes out to eat? What is the discussion when you go to buy clothes? What is the discussion when your family goes to buy a

large purchase, like a car or appliance.

The Enlightenment

The Enlightenment is the culmination of the ideas of the Renaissance, The Protestant Reformation, and The Scientific Revolution.

The Enlightenment is the use of reason in guiding people’s thoughts about philosophy, society, and politics. Because of its emphasis on the use of reason, the Enlightenment was also known as the age of reason.

The Roots of the Enlightenment

The Enlightenment has its Roots in several places in History: Greek and Roman Philosophers: Greek thinkers used logic

to discover new truths, and Roman thinkers developed the ideas of natural law (the idea that laws govern the world).

Christianity: Thomas Aquinas taught that faith paired with reason could explain the world.

The Renaissance and Reformation: Humanism focused on individuals, and humanists used reason to argue against church beliefs.

The Scientific Revolution: Scientists used reason and the scientific method to discover the laws that govern nature and the world (laws of physics).

Voltaire

Voltaire was a French Philosopher who challenged many traditional ideas.

He challenged religion, saying people should improve their own lives.

He also fought against censorship-famously saying “I may disapprove of what you say, but defend to the death your right to say it.”

The Ideas of the Enlightenment

Humans are the only animals with the ability to reason

Reason can be used to improve people’s lives

Reason can free people from unfair governments, ignorance, and superstition.

The natural world is governed by laws that can be discovered by reason.

Human behavior is governed by natural laws

Governments should reflect natural laws and encourage education

Government and the Enlightenment

The Idea of Divine Right

Most countries around the world at one time or another have been ruled by “divine right.”

This is the idea that god chose the ruler, and no one should challenge their power.

We have seen this in China, Japan, Egypt, India, and Europe. Even people today (Moammar Gadhafi)

During the Enlightenment, people began to challenge this idea.

Enlightenment Thinkers

The Enlightenment in America

Life in Great Britain

British citizens were participated in government through parliament

If taxes were going to be raised, they had a voice against it.

British citizens felt they had a voice in government.

Life in the British Colonies in America

Colonists were British citizens, however, they were not represented in their government

When Great Britain raised taxes on the Colonies, the colonists felt they were not being represented.

They were upset they had no voice in government.

Colonists’ Views

Benjamin Franklin

Went to London to argue against “Taxation against Representation”

Argued that Colonists needed a voice in government to help protect them.

Thomas Jefferson

He was influenced by John Locke, and argued that G.B. had no right to impose laws or taxes on the colonies.

He supported the ideas of separation from G.B., and actually wrote the Declaration of Independence.