The Resurgence of Europe Everything is about to Change

EUROPE was Stuck Political Economic Social systems Collapse As a result of the Fall of Rome

RE-Surgance The Crusades set off a chain of events that will surge the Europeans ahead and help them get out of the Middle Ages. Click Here for video Some questions in your packet apply to information that you should remember from what we have learned before. So think about what you already know in addition to what is written on the slides.

Everything is CHANGING Political System: Feudalism Economic System Manoralism Dominant Belief System: Roman Catholic Church

Population growth A growing population and renewed interest in trade led to the growth of cities and urban centers.

The middle class Merchants Traders Artisans Craftsmen They took the economic position between the upper (wealthy) and the peasants. Many formed Guilds. (likeminded businessmen) Regulated prices and work conditions. Provided for guild members injured or for their families if they are killed or died. Trained new guild members apprentices

Craftsmen and merchants form guilds Guilds: Regulated prices and work conditions. Provided for guild members injured or for their families if they are killed or died. Trained apprentices (new guild members) they protected their trade. Who Protected them before? _____________

The Rise of Capitalism / Market Economy Trade and opportunities for commerce not only created the need for a cash economy but also an opportunity for individuals to gain wealth by investing in themselves or others When demand for goods increased, investors made more profits, when demand decreased invertors took losses, Capital means investment. Economic power shifted away from the nobles (who controlled the manors) to the capitalists who now controlled both the trade and the profits

Businesses Groups of merchants further increased their economic power by pooling their cash resources. They formed partnerships and joint stock companies Individual or groups of merchants formed banks. –Currency exchange –Investment in other businesses –Create loans Insurance companies Charged a fee to reduce business risks and losses How were these Capitalists meeting their needs? Who met their needs before?

The Economy Transforms From To Barter Cash $$$$ Capitalism replaces Manoralism as the dominant Economic System

Barter Economy (less efficient) Goods /stuff Given in exchange for In the Manorial barter system, the (local) nobles owned almost of the goods on the manor. Therefore, they had almost all of the economic power to control the flow of goods. All that changed, especially in the cities and towns

The CASH economy The Capitalist (cash) Economy offers more options than the Manoral (barter) economy How many options do you have with your cash?

Your loss is my gain In order to compete in a cash economy, the local nobles had to convert their assets to cash. Serfs (labor) Land ( fields) In order to maintain their manors, some nobles borrowed from banks. The manorial / feudal systems fall apart. King can raise cash by collecting taxes Serfs now can: – now buy their freedom and work for themselves. –be trained as craftsmen and artisans. –act independently from the local noble. LOSERS GAINERS

Transference of political power The local nobles who formerly exercised most of the real political power lost much of their power The kings who formerly had little power gain much of the political power lost by the local nobles. The end for now. Make sure you answer the assessment questions in your packet.