Chapter 6: Economic and Social change 1450-1648

Unit 1 Exploration

Economic Expansion and Innovation

• Emphasis on Humanism and Individualism created desire to expand trade and eventually explore new lands.

• In 1350 Europeans knew only what they had known about the world for 1000 years- by 1650 it is all different

• A true “global” economy transformed the social order.

Commercial Revolution

• Europe has been an agricultural economy from fall of Rome- during this time focus will begin to turn first to trade, then to business- which will begin to create the modern economy

• Invent modern business practices like bookkeeping, banking and investment (stocks)

Hanseatic League

• Group of German states who formed a trade federation during the middle ages.

• Early example of capitalism and business planning.

Population Increases, Food Prices, Urban Growth

• After downturn of Black Death, population began to grow again in the 1400s- pop. Rose 50% between 1470-1620. Cities grew correspondingly (London went from 50-200k)

• Food prices rose b/c agriculture didn’t grow as fast as population ($$ to be made farming)

• Enclosures: Began in England. To make more $$, landowners enclosed “common” lands so farming would be more efficient. Pushed peasants off land, moved to cities and became laborers

Portuguese

• Chased Muslims across straight of Gibraltar and attacked Morocco in early 1400s. Saw wealth of Sahara trade- wanted in.

• Prince Henry the Navigator- founded navigation/sailing school, and funded exploration of W. African coast.

• Bartholomew Dias 1488- rounded Cape• Vasco di Gama 1497- reached India

Price Revolution• Between 1500-1700 there was a long slow period of

inflation (prices and wages) encouraged people to get into business, and for countries to get into trade

• Overall- standard of living in Western Europe increases• Putting Out System: Guilds often controlled trades in

towns. To get around them, entrepreneurs had products made (in stages) at worker’s homes- they were paid by piece.

Capitalism/Mercantilism• Capitalism: Econ system based on

private ownership of property and business that produces goods to be sold in a free market w/o gov’t intervention. Defined by Adam Smith

• Mercantilism: Responsibility of gov’t to create the best econ, they should protect domestic business through tariffs

• Joint Stock Co: Companies formed by groups to minimize risk (pop. For exploring) Often used in Eng/Holland, where gov’t encourage private exploration and business (as opposed to Sp/Fr which were absolutist)

• Bullionism: a country should have as much gold on reserve as possible

• Countries wanted a favorable balance of trade (selling more than they buy) Colonies will become important for this as sources of raw materials and markets for finished goods

Technological Advances

• Before they could explore- needed to improve sailing techniques.

• Adapted foreign inventions- like Compass and Astrolabe.

• Redesigned ships (flat bottom from Med.) to go in deeper waters and to carry cannon

• New Mercator projection allowed more accurate mapping

• Used Cross staff and Quadrant to measure latitude (as well as astrolabe)

• Portuguese invented Caravel: deep hulled ship with both Lateen and Square sails- good for many types of waters. Has a Axial (side) rudder

Expansion Overseas• Europe has been interested in trade with Asia since Middle Ages

(Crusades, Marco Polo) but Ottomans control Silk Road (and Italy controls Med. Trade with Ottoman) so they work on a Sea Route to Asia. (never been done)

• Iberians 1st involved- they had issues with Islam, were close to Atlantic- and all fired up from Reconquista and unification of their country

Glory, God and Gold• Motivations for

exploration. Believed in the power of man, had strong religious fervor (esp. Spain) and knew there was $$ to be had from treasure, and in the long run from successful trade

Spanish

• Columbus says it’s faster to go west to reach Asia. Made 3 voyages- claimed to have found Asia (died thinking he had)

• Exploration a huge blow to Italian economy (cheaper to go straight to sources) Econ/Political decline of Italy begins

• Europeans assumed all other civilizations were inferior.

• Portuguese came to trade (and go home) Spanish came to claim and conquer.

• Success came from “Guns, Germs, and Steel”

Amerigo Vespucci• 1st to realize (out loud)

that Euro had found a new world- NOT Asia. Explored in Brazil

• Continent named for him b/c he told German Cartographer he was first to reach South America. (actually Pedro Cabral 1500)

• 1552 wrote “brief account of the the destruction of the Indies” which criticized European colonialism and Columbus

• 1513 First European to see Pacific ocean (which he named) Claimed central America for Spain

Bartholomew de la CasasVasco De Balboa

Treaty of Tordesillas1493Spain and Portugal fear bumping into each other during

exploration- go to Pope for mediation.Pope draws an imaginary line down a map of the world

(adjusted a few years later)Spain gets everything to the west: N/S America (except Brazil-

the adjustment) Orients them towards the Americas- where they take over and introduce profound change

Portugal gets everything to east- Africa/India (and Brazil) Did get to “claim all land” like Spain- but est. trade routes were there. Less domination, more joining in the party.

Spanish EmpireHad clear-cut “enemies”

civilizations to defeat and dominate to control territory.

Cortez: Aztecs 1519 fast defeat

Pissarro: Inca 1532 fairly slow to defeat

Use treasure to buy manufactured goods rather than develop industry, puts them behind

Actually more like imperialism of 1800s – conquer and subjugate established civilizations.

Colonies existed to serve mother country (mercantilism) in Spain’s case- to produce treasure. 25% of kings income came from mines of Peru.

Divided territory into 4 “viceroyalties” New Spain, Peru, La Plata, Columbia

Portuguese Empire

• No specific civilizations to defeat of conquer. • Trade along Swahili coast, India, and Malaysia.• Establish trade “forts’ (fortifications) to trade

slaves, gold, and other products• Stay on coast- don’t go far inland.• Less missionary (though they did try- Francis

Xavier in Asia) b/c it wasn’t generally effective with Muslims and Hindus

Spanish Colonial Economy• Native population decimated by European disease.• Encomienda: Europeans claimed land, and the people

who lived on it as their serfs (but they die) Begin to import slaves from Africa (works better)- and becomes basis of agricultural econ in Caribbean, Brazil et…(sugar)

• Peru was where the silver mines were- so a mining econ there (still slave labor, but more native than African) Mixed blessing- gave $$ caused inflation- made their ships targets for pirates

Society in Colonial Latin America• Social division by Race (new thing for Europeans)

Sociodad de la Castas. Brought Patriarchal society and imposed in on Americas

• Europeans- either peninsulare or Creole• Mestizo (euro/native)• Mulatto (Euro/African)• Indian• Slave (African)

Dutch, English and French Colonialization

• Econs already trade based (esp. Dutch/Eng) but protestant work ethic drove them to work hard.

• Dutch followed Portuguese into long distance sea trade- Muslims liked them, Calvinists aren’t missionary- but they used their guns to make advantageous trade deals

• Excited by Iberian success (especially treasure- though other Euros never really hit that jackpot)

• Set up forts at “pinch points” to control trade routes. (focus on pacific trade)

• Built Capetown in S. Africa as a stopping point

Joint Stock Company

• Kings didn’t finance as much for this 2nd wave (France exception) done more through private enterprise.

• Dutch East/West India Co

• British East/West India Co

• Trade corporations- became virtually law unto themselves b/c they had so much power