2 The Commercial Revolution and the Columbian Exchange (Sixteenth Century)
3 What is the Commercial Revolution? “The shift from a town-centered economy to a nation-centered economy.”The emergence of commercial capitalism
4 Causes Population increase Inflation Europe in 1600: 90 million people 20 million of those added in the 16th CenturyInflationDevaluing of currencyPrices go up, wages go downActually helped emerging entrepreneurs
5 Emerging Capitalism “Putting out” system New Monarchies New banking systems“commercial capitalism”Capital and laborMercantilism“favorable balance of trade”“bullionism”Self-sufficiencyRole of the government
6 The “Price Revolution” Population growth + rise in inflationSpain and the New WorldThe Columbian ExchangeFrom the New WorldTo the New WorldResults for EuropeansResults for Native Americans
7 The Cottage Industry (a.k.a. “putting out system”) ProsAvoided guildsHelped farmers supplement incomeCreated entrepreneursCreated new consumer goodsWork could be done at homeConsInefficientWorkers spread out in many placesLabor wasn’t coordinated and organizedLack of capital
8 The Physiocrats Francois Quesnay (1694-1774) Pierre Dupont de Nemours ( )Anti-mercantilismAnti-regulationConcerned with agricultureGovernment’s role: protect property and enforce laws
9 The Economics of the Industrial Revolution “Classical Economics”
10 Adam Smith Laissez-faire capitalism Competition Self-interest Division of Labor
21 Karl Marx (1818-1883) and Friedrich Engels (1820-1893)
22 The Communist Manifesto (1848) Das Kapital (1867)
23 Main Ideas Class conflict Impact of Industrialization AlienationLabor Theory of ValueDialectical MaterialismHegel’s dialectic “turned on its head”An inevitable historical process (hence “scientific socialism”)
24 ALL OF THIS FUNCTIONS IN THE REALM OF IDEAS FOR HEGEL ThesisAntithesisSynthesis(New Thesis)AntithesisALL OF THIS FUNCTIONS IN THE REALM OF IDEAS FOR HEGELSynthesis(New Thesis)AntithesisABSOLUTE IDEAThe Ultimate Synthesis(Eventually)
25 The Ultimate Synthesis MasterSlaveF E U D A L I S MNobilityPeasantsC A P I T A L I S MALL OF THIS FUNCTIONS IN THE REALM OF ECONOMICS FOR MARXBourgeoisieProletariatCOMMUNISMThe Ultimate Synthesis(Eventually)
26 “Dialectical Materialism” Marx framed this in economicsCLASS CONFLICTStages of history (these are scientific)Primitive communismSlaveryFeudalismCapitalismCommunism“It is not the consciousness of humans which determines their being. It is their social being which determines their consciousness.”
27 Socialism After 1870 The First International (1864-1876) Trade Unions Legal in Britain, 1871Legal in France, 1884Most powerful in Germany“Revisionist” SocialismJean Jaures (France, )Eduard Bernstein (Germany, )The Erfurt Program (Germany, 1891)Improve lives of workers, not work for revolutionThe Fabian Society (England, 1884)The Labor Party (England, 1906)The Second International ( )Denounced “opportunism”Bolshevism and LeninismChanges to Marxism
29 Describe and compare the differences among Utopian socialists, Karl Marx, and Revisionist Socialists in their critiques of 19th century European economy and society.
30 “In the 15th century, European society was still centered on the Mediterranean region, but by the end of the 17th century, the focus of Europe had shifted north”Identify and analyze the economic developments between 1450 and 1700 that helped bring about this shift.
31 How and in what ways were economic and political factors responsible for intensifying European imperialist activity in Africa from the mid-19th century to the beginning of the First World War?
32 Analyze changes in the European economy from 1450 to 1700 brought about by the voyages of exploration and by colonization. Give specific examples.
33 Describe and analyze the issues and ideas in the debate in Europe between 1750 and 1846 over the proper role of government in the economy. Give specific examples.
34 Analyze the common political and economic problems facing Western European nations in the period and discuss their responses to these problems.
35 Analyze the influence of the theory of mercantilism on the domestic and foreign policies of France,
36 Analyze the key developments that characterized the European economy in the second half of the nineteenth century.
37 Both Jean-Baptiste Colbert ( ) and Adam Smith ( ) sought to increase the wealth of their respective countries. How did their recommendations differ?
38 Explain the reasons for the rise of the Netherlands as a leading commercial power in the period
39 Discuss the economic policies and institutions that characterized mercantilist systems from
40 How and to what extent did the Commercial Revolution transform the European economy and diplomatic balance of power in the period ?
41 Describe and analyze economic policies in Eastern and Western Europe after 1945.
42 Compare and contrast the social and economic roles of the state in seventeenth and eighteenth century Europe (before 1789) to the social and economic roles of the state in Europe after the Second World War.