Economic Recovery Sparks Change 7.4

An Agricultural Revolution  Technology improved farming  Peasants began to use plows made of iron instead of wood.  Slow oxen were replaced by faster horses for pulling plows.  The three field system was developed as a way to rotate crops to ensure the soil remained fertile.  Between 1000 and 1300, the population of Europe nearly tripled.

The Revival of Trade and Travel  During the 1100s feudal wars and invasions declined. This era of peace allowed for Europe’s economy to flourish.  Traders formed merchant companies,traveled in armed caravans, and traded with Asia and the Middle East.  Trade centers grew on trade routes. These trade centers became towns and cities.  Merchants were granted charters by kings or lords which outlined the rights a privileges of a town. In exchange, the lord or king was paid a large, annual fee.

A Commercial Revolution  The need for capital, money for investments, stimulated the growth of banking houses.  Merchants formed partnerships to fund large scale business ventures that limited risk and the amount of money needed from each partner.  Insurance was developed to protect a merchant’s goods.  Muslim traders introduced the use of credit.  The use of money put an end to serfdom. Instead of paying lords with labor, serfs paid in currency.  By 1300 most peasants were either hired farm laborers or tenant farmers, who paid rent for their land.

The Rise of the Middle Class  Artisans, merchants, and traders made up the new middle class.  Nobles despised them because they had no control over the towns the middle class live in. The clergy hated them because they viewed money made by some middle class from interest on loans as immoral.  The middle class formed guilds, associations that controlled and protected certain businesses.  Apprentices were trainees to a guild master.  Journeymen were apprentices that became salaried workers.

Town and City Life Towns and cities grew rapidly during the middle ages. Cities were overcrowded, had narrow streets, poor sanitation, and multistory houses. They were a fire hazard and breeding ground for disease.