The The Commercial Commercial RevolutionRevolution

The The Commercial Commercial RevolutionRevolution

What do we know about the What do we know about the economy of the Middle economy of the Middle

Ages???Ages???

What do we know about the What do we know about the economy of the Middle economy of the Middle

Ages???Ages???

I.I. The Price RevolutionThe Price RevolutionI.I. The Price RevolutionThe Price Revolution

£ A. Population Growth A. Population Growth 20 % growth between 1500-20 % growth between 1500-

1600 (up to 90 mil)1600 (up to 90 mil)

£ B. Inflation B. Inflation CausesCauses

Merchants liked-Merchants liked-

£ C. Leads to the Commercial “Revolution” C. Leads to the Commercial “Revolution” ????

II. New Commerce and II. New Commerce and ProductionProduction

II. New Commerce and II. New Commerce and ProductionProduction£ A. As markets widened…A. As markets widened…

£ B. New entrepreneurs B. New entrepreneurs

£ C. Putting Out System (C. Putting Out System ( ,, )) Entrepreneurs….Entrepreneurs…. Kept ownership…Kept ownership…

•AVOIDED…AVOIDED… Labor often became gender dividedLabor often became gender divided

£ D. Divergence in Capital & LaborD. Divergence in Capital & Labor People worked for wages with no connection to the big picture; as People worked for wages with no connection to the big picture; as

opposed to working for their own lives/communitiesopposed to working for their own lives/communities

£ E. New Industries E. New Industries mining, cannons mining, cannons & muskets, & shipbuilding; printing, & muskets, & shipbuilding; printing, consumer goods (sugar, rice); textilesconsumer goods (sugar, rice); textiles

£ F. New Banking Practices F. New Banking Practices

£ G. Joint Stock Companies G. Joint Stock Companies

II. New Commerce and II. New Commerce and ProductionProduction

II. New Commerce and II. New Commerce and ProductionProduction

III. MercantilismIII. MercantilismIII. MercantilismIII. Mercantilism

A.A. “Bullionism” “Bullionism” the eco. health of a nation the eco. health of a nation could be measured …could be measured … ‘‘Hard’ money was the source of prosperity, Hard’ money was the source of prosperity,

prestige, and strength for a nation.prestige, and strength for a nation. Bullionism dictated a …Bullionism dictated a …

• Export more than you import [a trade Export more than you import [a trade surplus].surplus].

________________ on imported manufactured good.

_________________ on imported raw materials.

B. Each nation must try to achieve ….B. Each nation must try to achieve …. Those founding new industries should be Those founding new industries should be

rewarded by the staterewarded by the state

Characteristics of MercantilismCharacteristics of MercantilismCharacteristics of MercantilismCharacteristics of Mercantilism

C. ________________ should be carefully C. ________________ should be carefully encouraged.encouraged.

Less of need to import foods.Less of need to import foods. Prosperous farmers could provide a Prosperous farmers could provide a

base for taxation.base for taxation.

D. ____________ was necessary to control D. ____________ was necessary to control foreign markets.foreign markets.

Less need to use the ships of other Less need to use the ships of other nations to carry your trade goods.nations to carry your trade goods.

Your own fleet adds to the power and Your own fleet adds to the power and prestige of the nation.prestige of the nation.

E. Oppose __________________E. Oppose __________________ further centralizationfurther centralization

Characteristics of MercantilismCharacteristics of MercantilismCharacteristics of MercantilismCharacteristics of Mercantilism

F. ___________ would provide captive F. ___________ would provide captive markets for manufactured goods & markets for manufactured goods & sources of raw materials.sources of raw materials.

G. Trade is a G. Trade is a __________________________________________ A nation can gain in international trade A nation can gain in international trade

only at the expense of other nations.only at the expense of other nations.

Manufactured goods

Raw materials

Mother

Country

Mother

Country

Colony

Colony

Cheap labor

As much as possible,

trade ONLY with your allies and your own colonies

Characteristics of MercantilismCharacteristics of MercantilismCharacteristics of MercantilismCharacteristics of Mercantilism

H. _________________ was needed to H. _________________ was needed to provide a domestic labor force to provide a domestic labor force to people the colonies.people the colonies.

I. ______________ should be avoidedI. ______________ should be avoided They took money out of the economy They took money out of the economy

unnecessarily.unnecessarily. In done in theory ONLY!!!In done in theory ONLY!!!

Characteristics of MercantilismCharacteristics of MercantilismCharacteristics of MercantilismCharacteristics of Mercantilism

J. _________________ was needed to J. _________________ was needed to regulate and enforce all of these regulate and enforce all of these economic policies.economic policies. State-sponsored trade monopolies.State-sponsored trade monopolies.

• Eng & Dutch East India Co.’s Eng & Dutch East India Co.’s Assist merchants against restricting Assist merchants against restricting

guildsguilds Internal tariffs outlawedInternal tariffs outlawed

Jean Baptiste Colbert Jean Baptiste Colbert [(1619-[(1619-1683)1683)

Jean Baptiste Colbert Jean Baptiste Colbert [(1619-[(1619-1683)1683)

£ Architect of French Architect of French mercantilism or mercantilism or “Colbertism.”“Colbertism.”

£ There are four There are four professions of professions of importance to the importance to the nation:nation:

AgricultureAgriculture TradeTrade ArmyArmy NavyNavy

£ Encouraged uniform Encouraged uniform weights & measures.weights & measures.

Not successful, but effort at Not successful, but effort at centralizationcentralization

£ Opposed tolls on internal Opposed tolls on internal trade.trade.

Jean Baptiste Colbert Jean Baptiste Colbert [(1619-[(1619-1683)1683)

Jean Baptiste Colbert Jean Baptiste Colbert [(1619-[(1619-1683)1683)£ Supported mandatory labor on national Supported mandatory labor on national

roads.roads.£ Favored a large population.Favored a large population.

Father of 10 or more children would be Father of 10 or more children would be exempt from taxes.exempt from taxes.

£ Favored low wages and child labor.Favored low wages and child labor.

Colbert & Louis XIVColbert & Louis XIV

Who Benefited Most From Who Benefited Most From Mercantilism?Mercantilism?

Who Benefited Most From Who Benefited Most From Mercantilism?Mercantilism?

£ Monarchs Monarchs

£ Merchant capitalists Merchant capitalists

£ Government officials Government officials