Ecnmic Develpments Perid 1: 1450-1648 Renaissance and New Mnarchs New mnarchs ften established mnplies n tax cllectin. Cmmercial grups gained mre pwer and a greater rle in plitical affairs during this time. Think f the gentry in England r the Medici in Flrence. Refrmatin Sme Prtestant grups during the Refrmatin sanctined the ntin that wealth accumulatin was a sign f Gd s favr and a reward fr hard wrk. The biggest example f this were the Calvinists. Sme states explited religius cnflicts t prmte plitical and ecnmic interests. Explratin (ECONOMIC FEATURES ONLY) Eurpean natins were driven by cmmercial and religius mtives t explre verseas territries and establish clnies. Eurpeans sught direct access t gld, spices, and luxury gds as a means t enhance persnal wealth and state pwer. The rise f mercantilism gave the state a new rle in prmting cmmercial develpment and the acquisitin f clnies verseas. Figures like Jean Baptiste Clbert, the finance minister f France under Luis XIV, advcated fr this. Eurpeans established verseas empires and trade netwrks thrugh cercin and negtiatin (yu shuld knw the varius clnial pwers). Eurpe s clnial expansin led t a glbal exchange f gds, flra, fauna, cultural practices, and diseases, resulting in the destructin f sme indigenus civilizatins, a shift tward Eurpean dminance, and the expansin f the slave trade. The exchange f gds shifted the center f ecnmic pwer in Eurpe frm the Mediterranean t the Atlantic states and brught the latter int an expanding wrld ecnmy. Cities like Lndn, Amsterdam, and Antwerp grew mre pwerful. The Clumbian Exchange created ecnmic pprtunities fr Eurpeans. Eurpeans expanded the African slave trade in respnse t the establishment f a plantatin ecnmy in the Americas and demgraphic catastrphes amng indigenus peples.
Big Picture Ecnmic Develpments during this Perid: Ecnmic change prduced new scial patterns, while traditins f hierarchy and status cntinued Innvatins in banking and finance prmted the grwth f urban financial centers and a mney ecnmy. Innvatins included things like the Bank f Amsterdam and British East India Cmpany. The grwth f cmmerce prduced a new ecnmic elite, which related t traditinal land-hlding elites in different ways in Eurpe s varius gegraphic regins. Middle class, gentry, nbles f the rbe, etc. Ecnmic changes began t alter rural prductin and pwer. Subsistence agriculture remained the rule in mst areas. The price revlutin cntributed t the accumulatin f capital and the expansin f the market ecnmy thrugh the cmmercializatin f agriculture, which benefited large landwners in western Eurpe. As western Eurpe mved tward a free peasantry and cmmercial agriculture, serfdm was cdified in the east, where nbles cntinued t dminate ecnmic life n large estates. The attempts f landlrds t increase their revenues by restricting r ablishing the traditinal rights f peasants led t revlts. Ppulatin shifts and grwing cmmerce caused the expansin f cities, which ften placed stress n their traditinal plitical and scial structures. Ppulatin recvered t its pre-great Plague level in the 16 th century, and cntinuing ppulatin pressures cntributed t uneven price increases; agricultural cmmdities increased mre sharply than wages, reducing living standards fr sme. Migrants t the cities challenged the ability f merchant elites and craft guilds t gvern, and strained resurces.
The family remained the primary scial and ecnmic institutin f early mdern Eurpe and tk several frms, including the nuclear family. Rural and urban husehlds wrked as units. Frm the late 16 th century frward, Eurpeans respnded t ecnmic and envirnmental challenges, such as the Little Ice Age, by delaying marriage and childbearing. This limited ppulatin grwth and ultimately imprved the ecnmic cnditin f families. Grwth f cmmerce prduced a new ecnmic elite in many areas Gentry in England Nbles f the rbe in France Hierarchy and status cntinued t define scial pwer in urban and rural settings Mst Eurpeans derived their livelihd frm agriculture and riented their lives arund the seasns, the village, r the manr, althugh ecnmic changes began t alter rural prductin and pwer Subsistence agriculture was the rule in mst areas, with three-crp field rtatin in the nrth and tw-crp rtatin in the Mediterranean; in many cases, farmers paid rent and labr services fr their land The price revlutin benefitted large landwners in western Eurpe Serfdm was strengthened in eastern Eurpe Landlrds attempted t increase their revenues, which led t peasants revlting in sme cases Ppulatin shifts and grwing cmmerce caused the expansin f cities, which ften had stresses placed n their plitical and scial institutins Ppulatin recvered t its pre-plague level in the 16 th century Ppulatin pressures cntributed t uneven price increases Agricultural cmmdities increased mre sharply than wages, which reduced living standards fr sme Migrants in cities challenged elites and strained resurces Sanitatin prblems Pverty issues Crime rates went up City gvernments ften attempted t regulate public mrals Think f Calvin s Geneva here
Family remained the primary scial and ecnmic institutin f early mdern Eurpe and tk several frms, including the nuclear family Rural and urban husehlds ften wrked as units Men and wmen engaged in separate, but cmplementary tasks The Renaissance and Refrmatin raised debates abut female rles in the family, sciety, and the Church Renaissance figures debated wmen s right t an educatin Refrmatin figures debated wmen as preachers Eurpeans ften respnded t ecnmic challenges and envirnmental challenges like the Little Ice Age by delaying marriage and childbearing, which restrained ppulatin grwth and ultimately imprved the ecnmic cnditin f families
Perid 2: 1648-1815 Abslutism and Cnstitutinalism Mst abslute mnarchs practice mercantilism. Think f Luis XIV and Jean Baptiste Clbert. The English Civil War was in part a struggle by the gentry t increase their plitical rights t match their ecnmic pwer. The Dutch Republic develped an ligarchy f urban gentry and rural landhlders t prmte trade and prtect traditinal rights. Enlightenment Mercantilist thery and practice were challenged by new ecnmic ideas, such as Adam Smith s, which advcated fr free trade and a free market. French Revlutin Francis Quesnay and the physicrats were als gd examples f this. The French Revlutin had fiscal and ecnmic crises as a shrt-term cause fr the revlutin. The Reign f Terrr and Jacbins fixed prices and wages. Naplen implemented the cntinental system t byctt British gds. The Naplenic Cde prtected private prperty. Art Mvements Eighteenth century art and literature increasingly reflected the utlk and values f cmmercial and burgeis sciety. Think f the Dutch Glden Age f art with figures such as Rembrandt.
Big Picture Ecnmic Develpments Early mdern Eurpe develped a market ecnmy that prvided the fundatin fr its glbal rle. Labr and trade in gds were increasingly freed frm traditinal restrictins by gvernments and crprate elites. The Agricultural Revlutin raised prductivity and increased the supply f fd and ther agricultural prducts. The putting-ut system, r cttage industry, expanded as increasing numbers f labrers in hmes r wrkshps prduced fr markets thrugh merchant intermediaries r wrkshp wners. The develpment f a market ecnmy led t new financial practices and institutins. Insurance cmpanies, banking institutins, etc. The Eurpean dminated wrldwide ecnmic netwrk cntributed t the agricultural, industrial, and cnsumer revlutins in Eurpe. Eurpean states still mstly fllwed mercantilist plicies by drawing resurces frm clnies in the New Wrld and elsewhere. The transatlantic slave-labr system expanded in the 17 th and 18 th centuries as demand fr New Wrld prducts increased. Overseas prducts and influences cntributed t the develpment f a cnsumer culture in Eurpe. Items like sugar, tea, tbacc, rum, and cffee were big prducts. The imprtatin and transplantatin f agricultural prducts frm the Americas cntributed t an increase in the fd supply in Eurpe. Freign lands prvided new materials, finished gds, labrers, and markets fr the cmmercial and industrial enterprises in Eurpe. Cmmercial rivalries influenced diplmacy and warfare amng Eurpean states in the early mdern era. The cnsumer revlutin f the 18 th century was shaped by a new cncern fr privacy, encuraged the purchase f new gds fr hmes, and created new venues fr leisure activities. New cnsumer gds fr hmes included things like cttn and prcelain dishes. Cffeehuses and taverns became mre ppular as well. Family and private life reflected the effects f the cmmercial revlutin.
As cmmercial wealth increased, families dedicated mre space and resurces t children and child-rearing, as well as private life and cmfrt. Cities ffered ecnmic pprtunities, which attracted increasing migratin frm rural areas, transfrming urban life and creating challenges fr the new urbanites and their families. The Agricultural Revlutin prduced mre fd using fewer wrkers; as a result, peple migrated frm rural areas t the cities in search f wrk. The grwth f cities erded traditinal cmmunal values, and city gvernments strained t prvide prtectin and a healthy envirnment. The cncentratin f the pr in cities led t a greater awareness f pverty, crime, and prstitutin as scial prblems and prmpted increased effrts t plice marginal grups.
Perid 3: 1815-1914 Industrial Revlutin Great Britain established its industrial dminance thrugh the mechanizatin f textile prductin, irn and steel prductin, and new transprtatin systems in cnjunctin with uniquely favrable plitical and scial climates. Britain s ready supplies f cal, irn re, and ther essential raw materials prmted industrial grwth. Ecnmic institutins and human capital such as engineers, inventrs, and capitalists helped Britain lead the prcess f industrializatin, largely thrugh private initiative. Britain s parliamentary gvernment prmted cmmercial and industrial interests because thse interests were represented in Parliament. Fllwing the British example, industrializatin tk rt in cntinental Eurpe, smetimes with state spnsrship. France mved tward industrializatin at a mre gradual pace than Great Britain, with gvernment supprt and less dislcatin f traditinal methds f prductin. Industrializatin in Prussia allwed that state t becme the leader f a unified Germany, which subsequently underwent rapid industrializatin under gvernment spnsrship. Think f the Zllverein. A cmbinatin f factrs, including gegraphy, lack f resurces, the dminance f traditinal landed elites, the persistence f serfdm in sme areas, and inadequate gvernment spnsrship accunted fr eastern and suthern Eurpe s lag in industrial develpment. During the Secnd Industrial Revlutin, mre areas f Eurpe experienced industrial activity, and industrial prcesses increased in scale and cmplexity. Mechanizatin and the factry system became the predminant mdes f prductin by 1914. New technlgies and means f cmmunicatin and transprtatin including railrads---resulted in mre fully integrated natinal ecnmies, a higher level f urbanizatin, and a truly glbal ecnmic netwrk. Think f new technlgies like the Bessemer prcess r electricity. Think f new cmmunicatin and transprtatin develpments, such as the telegraph, steamships, telephnes, r the radi.
Vlatile business cycles in the last quarter f the 19 th century led crpratins and gvernments t try t manage the market thrugh a variety f methds, including mnplies, banking practices, and tariffs. Industrializatin led t new class develpments: Industrializatin prmted the develpment f new classes, such as the burgeisie and prletariat. In sme f the less rganized areas f Eurpe, the dminance f agricultural elites cntinued. Ecnmic mtivatins fr marriage, while still imprtant fr all classes, diminished as the middle-class ntin f cmpaninate marriage (marriage based n lve) began t be adpted by the wrking classes. A heightened cnsumerism develped as a result f the secnd industrial revlutin. Industrializatin and mass marketing increased bth the prductin and demand fr a new range f cnsumer gds, including clthing, prcessed fds, and labr saving devices. It als created mre leisure pprtunities. Think f catalgs and department stres. New efficient methds f transprtatin and ther innvatins created new industries, imprved the distributin f gds, increased cnsumerism, and enhanced the quality f life. Think f the steamships and railrads fr new methds f transprtatin and the chemical industry and electricity fr the new industries. Gvernments respnded t prblems created r exacerbated by industrializatin. Liberalism shifted frm laissez-faire t interventinist ecnmic and scial plicies in respnse t the challenges f industrializatin. Refrms transfrmed vercrwded and unhealthy cities. Refrmers prmted cmpulsry educatin t advance the gals f public rder, natinalism, and ecnmic grwth. Plitical mvements and scial rganizatins respnded t prblems f industrializatin. Mass-based plitical parties emerged as sphisticated vehicles fr scial, ecnmic, and plitical refrm. Wrkers established labr unins and mvements prmting scial and ecnmic refrms that als develped int plitical parties, like the British Labur Party.
Imperialism Eurpean natins were driven by ecnmic, plitical, and cultural mtivatins. The search fr raw materials and markets fr manufactured gds, as well as strategic and natinalistic cnsideratins, drve Eurpeans t clnize Africa and Asia, even as Eurpean clnies in the Americas brke free plitically, if nt ecnmically.
Perid 4: 1914 t Present WWI Russian Revlutin and Stalin In rder t imprve ecnmic perfrmance, Lenin cmprmised cmmunist principles and emplyed sme free-market principles under the New Ecnmic Plicy. After Lenin s death, Stalin undertk a centralized prgram f rapid ecnmic mdernizatin, ften with the severe repercussins fr the ppulatin, such as the Five Year Plans. Interwar Perid Stalin s ecnmic mdernizatin f the Sviet Unin came at a high price, including the liquidatin f the kulaks and ther perceived enemies f the state, devastating famine in the Ukraine, purges f plitical rivals, and, ultimately, the creatin f an ppressive plitical system. Musslini and Hitler rse t pwer expliting pstwar bitterness and ecnmic instability. The Great Depressin, caused by weaknesses in internatinal trade and mnetary theries and practices, undermined Western Eurpean demcracies and fmented radical plitical respnses. WWI debt, natinalistic tariff plicies, verprductin, depreciated currencies, disrupted trade patterns, and speculatin created weaknesses in ecnmies wrldwide. Dependence n pst-wwi American investment capital led t financial cllapse when, fllwing the 1929 stck market crash, the United States cut ff capital flws t Eurpe. Despite attempts t rethink ecnmic theries and plicies and frge plitical alliances, Western demcracies failed t vercme the Great Depressin and were weakened by extremist mvements. New plicies like the Ppular Frnt in France. Cld War The United States exerted a strng ecnmic influence in Western Eurpe, leading t the creatin f wrld mnetary and trade systems and geplitical alliances such as NATO. The have ecnmic institutins like the IMF and Wrld Bank that frmed. Cuntries east f the Irn Curtain came under the military, plitical, and ecnmic dminatin f the Sviet Unin with the Cuncil fr Mutual Ecnmic Assistance (COMECON) and the Warsaw Pact.
Eastern Eurpean natins were bund by their relatinships with the Sviet Unin, which scillated between repressin and limited refrm, until the cllapse f cmmunist gvernments in Eastern Eurpe and the fall f the Sviet Unin. Central and Eastern Eurpean natins within the Sviet blc fllwed an ecnmic mdel based n central planning, extensive scial welfare, and specialized prductin amng blc members. This brught with it the restrictin f individual rights and freedms, suppressin f dissent, and cnstraint f emigratin fr the varius ppulatins within the Sviet blc. After 1956, Sviet leader Nikita Khrushchev s de-stalinizatin plicies failed t meet their ecnmic gals within the Sviet Unin. This helped prmpt revlts in Eastern Eurpe. Fllwing a lng perid f ecnmic stagnatin, Mikhail Grbachev s internal refrms f perestrika and glasnst, designed t make the Sviet Unin mre flexible, failed t stave ff cllapse f the Sviet Unin. The cllapse f the USSR in 1991 led t the establishment f capitalist ecnmies thrughut Eastern Eurpe. The Eurpean Unin was enlarged. Pst-WWII Western Demcracies Pstwar ecnmic grwth supprted an increase in welfare benefits; hwever, subsequent ecnmic stagnatin led t criticism and limitatin f the welfare state. Marshall Plan funds frm the United States financed an extensive recnstructin f industry and infrastructure and stimulated an extended perid f grwth in Western and Central Eurpe, ften referred t as an ecnmic miracle. This increased the ecnmic and cultural imprtance f cnsumerism. The expansin f cradle-t-grave scial welfare prgrams in the aftermath f WWII, accmpanied by high taxes, became a cntentius dmestic plitical issue as the budgets f Eurpean natins came under pressure in the late 20 th century. Mass prductin, new fd technlgies, and industrial efficiency increased dispsable incme and created a cnsumer culture in which greater dmestic cmfrts such as electricity, indr plumbing, plastics, and synthetic fibers became mre available. Because f the ecnmic grwth f the 1950s and 1960s, migrant wrkers frm suthern Eurpe, Asia, and Africa immigrated t Western and Central Eurpe. Hwever, after the ecnmic dwnturn f the 1970s, these wrkers and their families ften became targets f anti-immigrant agitatin and extreme natinalist plitical parties.
Pst-Cld War New cmmunicatin and transprtatin technlgies multiplied the cnnectins acrss space and time, transfrming daily life and cntributing t the prliferatin f ideas and t glbalizatin. Eurpean Unin Think f things like smart phnes and the internet. Eurpean states began t set aside natinalist rivalries in favr f ecnmic and plitical integratin, frming a series f transnatinal unins that grew in size and scpe ver the secnd half f the 20 th century. As the ecnmic alliance knwn as the Eurpean Cal and Steel Cmmunity, envisined as a means t spur pstwar ecnmic recvery, develped int the Eurpean Ecnmic Cmmunity (EEC r Cmmn Market) and the Eurpean Unin (EU), Eurpe experienced increasing ecnmic and plitical integratin and effrts t establish a shared Eurpean identity. EU member natins cntinue t balance questins f natinal svereignty with the respnsibilities f membership in an ecnmic and plitical unin.
Imprtant Ecnmic Dates Cmmercial Revlutin (1500-1700) Antwerp=financial center f Eurpe (1500s) Glden Age f Spain (1550-1650) Had large clnies verseas Large silver and gld trade Knw reasns fr decline Glden Age f the Netherlands (1600-1650) Amsterdam was the financial center f Eurpe in the 17 th century Knw reasn fr decline Explratin Perid (1500s-1700s) Mercantilism was the majr ecnmic thery and practice Develpment f capitalism (1700s) Adam Smith: Wealth f Natins (1776) Cttage Industry and Enclsure (late 1600s thrugh 1700s) Agricultural Revlutin (1700s) First Industrial Revlutin (1750-1850) Britain dminates Secnd Industrial Revlutin (1850-1900) Germany dminates tward end Rise f ecnmic liberalism (1800s) Scialism (1800s) Welfare state began t emerge (late 1800s) Germany was the first welfare state Hyperinflatin in Weimar Republic (1920s) Stalin s Five Year Plans and cllectivizatin f agriculture (1930s) Ecnmic miracle in Western Eurpe (immediately after WWII; c. 1945-1960) Eurpean Unin frmatin (1990s, but had been building since WWII)