1. COMMERCIAL REVOLUTION (16th century: approx. 1500-1700)

2. Significance: brought about age of discovery and exploration Significance: brought about age of discovery and exploration

3. Causes population growth: 60 million in 1400; 75 million in 1500; 100 million in 1600population growth: 60 million in 1400; 75 million in 1500; 100 million in 1600 “price revolution”: (long slow upward trend); increased food prices, increased volume of money, influx of gold & silver from the New World.“price revolution”: (long slow upward trend); increased food prices, increased volume of money, influx of gold & silver from the New World. rise of capitalism (laissez-faire):entrepreneurs; bourgeoisie at the forefrontrise of capitalism (laissez-faire):entrepreneurs; bourgeoisie at the forefront

4. Capitalism Capitalism had existed in some forms in antiquity, but faded away with manorial system of the Middle Ages.Capitalism had existed in some forms in antiquity, but faded away with manorial system of the Middle Ages. Investment and money lending (usury) limited by Church laws.Investment and money lending (usury) limited by Church laws. Revived in the late Middle Ages through trade (Hanseatic League) and population growth.Revived in the late Middle Ages through trade (Hanseatic League) and population growth. Entrpenuers ignore church laws banning usury, leading to growth in banking.Entrpenuers ignore church laws banning usury, leading to growth in banking.

5. Banking First major banking firms being in northern Italy (Medici)First major banking firms being in northern Italy (Medici) Northern Europe:Northern Europe: –Fugger family of Augsburg –Jakob Fugger (1459- 1525) –Financed Charles V.

6. New Kinds of Business Banking expanded to Antwerp in 16th c., Amsterdam in 17th c.Banking expanded to Antwerp in 16th c., Amsterdam in 17th c. chartered companies: state provided monopolies in certain area (BEIC, DEIC), governments profited from ventures.chartered companies: state provided monopolies in certain area (BEIC, DEIC), governments profited from ventures. joint-stock companies: investors pooled resources for common purpose (forerunner of modern corporation), reduced risk.joint-stock companies: investors pooled resources for common purpose (forerunner of modern corporation), reduced risk.

7. Other Causes stock markets: e.g., Bourse in Germanystock markets: e.g., Bourse in Germany “Putting-out” Industry –cottage industries grow.“Putting-out” Industry –cottage industries grow. new industries: cloth production, mining, printing, book trade, shipbuilding, cannons & musketsnew industries: cloth production, mining, printing, book trade, shipbuilding, cannons & muskets consumer goods: rice, sugar, tea, spicesconsumer goods: rice, sugar, tea, spices mercantilism: nations sought self-sufficient economy; “bullionism”mercantilism: nations sought self-sufficient economy; “bullionism”

8. Results Imports of silver from the New World and population growth led to inflation – effected the poor and peasants the most.Imports of silver from the New World and population growth led to inflation – effected the poor and peasants the most. Landowners, merchants, artisans grow rich – reinvest money in exploration ventures.Landowners, merchants, artisans grow rich – reinvest money in exploration ventures. Population growth and enclosure pushed people of the land into citiesPopulation growth and enclosure pushed people of the land into cities Establishment of poor reliefEstablishment of poor relief