1. Beginnings of Capitalism SOC 370: Social Change Dr. Kimberly Martin

2. What is Capitalism? A type of economic system that incorporates Private ownership of the means of production (natural resources and capital – anything-man made used to produce other goods and services) Market economy with a general purpose money Production driven by supply and demand rather than centralized planning Domestic and trade networks that make goods available to a large number of people to help create demand Full-time economic specialization in which a large portion of the population (called the proletariat by Marx) must sell their labor for subsistence The bourgeoisie (the class of individuals who control the means of production) is the ruling class Marx would add: conflict between the bourgeoisie and the proletariat for control over the means of production

3. Feudalism Capitalism emerged from a particular form of advanced agrarian state Feudalism existed only in two places: Europe and Japan 800-1400s 1200-1800s (Before Feudalism, peasant agricultural production was less organized, less efficient, and less productive)

4. Feudalism Feudalism underwent 6 centuries of development in both places Europe 800 – 1450 Japan 1200 – 1800’s Note: throughout all of this, peasant life remained basically the same.

5. Characteristics of Feudalism Peasantry subject to control of a landlord class Fief (land granted by a king/lord to a vassal (usually military) that can then be inherited through families) system rather than salaries Political control by a class of specialized warriors Close personal tie between overlords and vassals (those who serve the overlord) including an oath of fealty

6. Landlord- Peasant Exploitation Extraction of agricultural surplus by landlords/vassals from peasants. Class structure – Europe: Landlords, Vassals, Peasants [+ Merchants, Wageworkers] Japan: Daimyo, Samurai, Peasants [+ Chonin, Hokonin]

7. Fiefdoms Landlords granted “fiefdoms” to vassals in return for service/loyalty -- E.g. “Manors” in Europe “Owned” by families (inter-enerationally) -- but couldn’t be sold – “inalienable” Two classes bound by intergenerational oaths of fealty.

8. Military Class 3. Held together by military force Landlords/vassals were also warriors/military Leaders -- “warlords” Loyalty/service included contributing to defense and conquest on behalf of overlord (often sent younger sons who did not inherit fiefdom and were expendable)

9. Vassal Automomy 5. Manors (vassals) granted much autonomy in return for fealty and tribute (part of local surplus). This is unlike the Romans who allowed little autonomy and used centralized authority to speed growth Autonomy led to slower growth

10. Trade in Feudalism Coexisting with Feudal System were largely autonomous merchant towns, protected by landlords. These functioned based on internal and external trade and craft manufacture by wageworkers/hokonin. Elements included: Factories, wage labor, money-banking-contract systems, legal system, “neutral” govt.

11. Social Growth in Feudalism During the Feudal Period: Landlords traded part of surplus to merchants for luxury goods and some technology (to increase peasant productiveness). More organized peasant production produced increasingly larger surpluses & allowed for the gradual growth of peasant populations. This led to growth of wealth and populations of landlords/vassals through land & luxury goods Merchants increased wealth in money & eventually (later) factories

12. Production Shift Increasing productivity + population growth expanded merchant towns faster than feudal manors. Merchants continually expanded trade networks And Shifted from “craft work” to factory system and wagework to increase productivity

13. Feudal Expansion into Colonialism Merchants seek out colonies for precious metals (gold, etc.) & raw material for industry (cotton-textiles, etc.). Early colonialism leads to early “Core” (colonizing & exploiting) & “Peripheral” (exploited) structure.

14. Collapse of Feudalism Over several centuries, this process would have led to industrialization anyway, but in Europe and Japan, the Feudal systems “collapsed” and this led to industrial revolutions rather than gradual transitions.

15. Feudal Collapse Characteristics Characteristics of states where collapse occurred & capitalism emerged 1. Small size 2. More efficient organized state system and class structure. 3. Less internal warfare 4. Geography - large access to waterways, more efficient for transportation/trade. 5. Climate – temperate (colder climates not as agri productive, tropical climates had less assertive states; eventually warmer climates were exploited for raw materials -- “peripheralized” (e.g. US South & cotton). 6. Dramatic population growth 7. Most political autonomy for merchants (in best interests of landlords who benefited from trade).

16. Feudal Collapse Processes Where the feudal system worked best (small states on waterways with temperate climates), productivity was high, population growth was high, and landlords granted a lot of autonomyto merchants. Productivity and population growth (surplus peasants) provided work force for merchants, and landlords were among the main customers. Over generations, population growth among the landlords and vassals began to dilute the land-based system. Inheritance increasingly broke up the manors and eventually landlords began to sell off land. Primogeniture (oldest son inherits) was a response to this. Manufacturing and trade became more lucrative than peasant-based production leading to revolution and reorganization of merchants

17. Study Guide FeudalismMeans of production FiefCapital VassalSupply and demand OverlordBourgeoisie Specialized militaryProletariat ClimateMarket system CollapseGeneral purpose money TradeFull-time economic specialization Production Shift Primogeniture