The Commercial Revolution

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

I. The Price Revolution £ A. Population Growth  20 % growth between (up to 90 mil)  £ B. Inflation   Causes  Merchants liked- £ C. Leads to the Commercial “Revolution” ??  

II. New Commerce and Production £ A. As markets widened… £ B. New entrepreneurs £ C. Putting Out System (, )  Entrepreneurs….  Kept ownership… AVOIDED… AVOIDED…  Labor often became gender divided £ D. Divergence in Capital & Labor  People worked for wages with no connection to the big picture; as opposed to working for their own lives/communities

£ E. New Industries  mining, cannons & muskets, & shipbuilding; printing, consumer goods (sugar, rice); textiles £ F. New Banking Practices  £ G. Joint Stock Companies  II. New Commerce and Production

III. Mercantilism A. “Bullionism”  the eco. health of a nation could be measured …  ‘Hard’ money was the source of prosperity, prestige, and strength for a nation.  Bullionism dictated a … Export more than you import [a trade surplus]. Export more than you import [a trade surplus].  ________________ on imported manufactured good.  _________________ on imported raw materials. B. Each nation must try to achieve ….  Those founding new industries should be rewarded by the state

Characteristics of Mercantilism C. ________________ should be carefully encouraged.  Less of need to import foods.  Prosperous farmers could provide a base for taxation. D. ____________ was necessary to control foreign markets.  Less need to use the ships of other nations to carry your trade goods.  Your own fleet adds to the power and prestige of the nation. E. Oppose __________________  further centralization

Characteristics of Mercantilism F. ___________ would provide captive markets for manufactured goods & sources of raw materials. G. Trade is a _____________________  A nation can gain in international trade only at the expense of other nations. Manufactured goods Raw materials Mother Country Colony Cheap labor As much as possible, trade ONLY with your allies and your own colonies

Characteristics of Mercantilism H. _________________ was needed to provide a domestic labor force to people the colonies. I. ______________ should be avoided  They took money out of the economy unnecessarily.  In done in theory ONLY!!!

Characteristics of Mercantilism J. _________________ was needed to regulate and enforce all of these economic policies.  State-sponsored trade monopolies. Eng & Dutch East India Co.’sEng & Dutch East India Co.’s  Assist merchants against restricting guilds  Internal tariffs outlawed

Jean Baptiste Colbert [ ( ) £ Architect of French mercantilism or “Colbertism.” £ There are four professions of importance to the nation:  Agriculture  Trade  Army  Navy £ Encouraged uniform weights & measures.  Not successful, but effort at centralization £ Opposed tolls on internal trade.

Jean Baptiste Colbert [ ( ) £ Supported mandatory labor on national roads. £ Favored a large population.  Father of 10 or more children would be exempt from taxes. £ Favored low wages and child labor. Colbert & Louis XIV

Who Benefited Most From Mercantilism? £ Monarchs  £ Merchant capitalists  £ Government officials 