Unit 2 Part 2

Chapter 9: Economic expansion in the 18th century

Changes

Exploration and colonies have created a new economy- but in the 1700s the vast majority of Europeans were still farmers- and their daily work had changed very little since the middle ages

18c will bring remarkable technology and change to dramatically reform European life.

Agriculture and the Land

80% of Europeans were farmers (some countries lower, some higher %- Netherlands only country where they were not clear majority)

Agricultural yields really no better than they had been in ancient world- and every 8-10 years they crops would fail altogether. Cycle of hunger often left populations weak- susceptible to disease. Population of Euro has been fairly steady (with ups and downs) for 100s of years

Open Field System

Land around village (owned by nobles) divided into long narrow strips w/no fences etc… rotated on a 3 year cycle (wheat, beans, fallow)

Commons: open fields of hay/pasture land used by all.

After harvest livestock pastured in the fields- gleaners allowed to pick up what was left behind

Not an overly efficient system- but traditional and workable. People didn’t see a big reason to change it- but changing it will allow growth

Regional Differences

Eastern Europe further behind than Western- still using forced labor (Russia so far behind they only ADDED serfs in 1649)

All over Europe nobles own vast

majority of land Nobility/Serfdom provided short

term profits for landlords- but

stifled econ development

Low Countries

Netherlands, Belgium, Luxembourg Tiny area- and really tough to farm (much below

sea level- esp. in Holland) they had to WORK to make it happen-so began to farm scientifically (helps that Netherlands big in Sci Rev)

Began Enclosure movement- pioneered drainage techniques to expand farmland

1st country to show you could get more food in less space by farming with a plan

Agricultural Revolution

There was a break from past ways of farming during the 18c. Didn’t happen all at once.

Began as bread prices began to rise from inflation of 1600s- created greater profit for farmers- gave them

motivation to achieve

better crops. Characterized by

experimentation, new

crops, and technology

Columbian Exchange

Crops from new world create a revolution in the European diet.

Most important were potatoes and corn as staple crops, but also began to grow tomatoes, beans, peppers etc…

England

Adapted Dutch ideas Jethro Tull- created iron plows to turn soil more deeply and seed drill to plant (rather than cast) wheat.

New fertilizers, crop rotation eliminated fallow period, began scientific breeding of livestock for size (they then made more manure)

Charles Townsend: ambassador to Netherlands- notice crop rotation- Dutch used turnips/clover to replenish field rather than fallow period.

Robert Blakewell- scientific breeding of livestock for a variety of products- meat, wool, leather etc….

Enclosure

Landlords consolidated (and hedged) their fields for greater production. Common/strip fields replaced by large blocks.

Peasants unhappy- but landowners used Parliament for backup between 1727-1801. Peasants became tenant farmers, or were driven off the land altogether.

Corn Laws

Over 300 Laws passed

dealing with enclosure etc…

to benefit landowners. (capitalism rules) High tariffs on foreign grain- keep food prices

high (which hurts poor)

Impact

Significantly improved farm production in Western Euro. (Fr, Dutch, Eng all used) food supply became more reliable

Controversial (at the time and now) because it hurt the poor to help the rich

Traditional communities disrupted

Peasants moved to towns and cities looking for labor (leads them right into being the workforce of the IR.)

Women could no longer raise animals on common land and live off product (milk, cheese) began to work in cottage industries (spinning, weaving) instead

Demography

Study of population growth and movement- esp. as relates to environment and natural resources. 18c Euro will undergo significant agricultural change- their first in a long time

Traditional Patterns

Before 1700 there was a predictable cycle- population would grow for several generations, then there would be crop failure or an outbreak of disease (or both) which would create a drop, and you would start all over

Some changes bigger than others- took until 1550 for population to reach what it had been in 1347 (black death),

Population Growth

Population estimates before 1800 are generally unreliable- but one can safely estimate that the population of Euro grew from 100/120 million in 1700 to 180/190 million in 1800.

Breaks the old cycle

More about the decline of death rates than the rise of birthrates at this point- people marrying later, having smaller families, but more survives

Advances in medicine not significant yet- except for Smallpox inoculation introduced in Eng by William Jenner

Disease

Black death as reappeared sporadically (never as bad, but always an issue). Last outbreak 1720 in Marseilles- but strict quarantine measures keep it from spreading- those become standard practice.

Also, the Brown rat (from Asia, and NOT a carrier of plague) overruns the Black rat

Sanitation/Hygiene

Planned water supplies/sewer systems significantly improved health (reduce dysentery, typhoid, typhus)

Enclosure and urbanization often led to draining of swampland for expansion- limited disease carrying mosquitos etc…

Food

Pop. Of Euro is better nourished than ever before. Milder climate period creates better crop yield

Potatoes key crop for poor- 1 acre can produce enough food for a family of 4.

Also, there is better transportation of farm goods (roads, canals etc…) so people in cities eating better as well

Growth of Cottage Industry

Pop. is growing, and people are getting pushed of land (enclosure) contributed to the development of cottage industry in Eng. Putting Out System- merchant “put out” raw materials to workers, who processed it in their homes and returned a finished product. Textiles, housewares, buttons, gloves, instruments

Rural workers (esp. women) use this to supplement income

Whole family would work on products- “spinsters” unmarried girls of family- needed 4-5 spinners to create enough thread to keep 1 weaver busy.

Proto industrialization

Rural industry became a major segment in econ of 18th century. Rural people wanted $$, capitalists eager to circumvent guilds in towns, most manufacturing still done by hand w/ common tools.

However- Improvements were coming:– John Kay: flying shuttle 1733– James Hargreaves: spinning Jenny 1764– Richard Arkwright: Water frame 1769

Cities

Even before IR, urban population had been growing

1500-1700 urban pop rose from 5%-9%, mostly in established cities.

After 1750 pop pattern changed with est. of new cities, which would become major industrial centers

Capitals and Ports

1600-1750 the biggest econ growth was in port cities (Atlantic trade)

Also, as monarchs consolidated power- their capital city became more important as well.

Old, landlocked medieval trade centers began to decline

Sugar most important new trade product. Tobacco and cotton also very popular (all slave products)

New cities and towns

New pattern after 1750- result of improved areas of agricultural production (market towns) and cottage industry (which will lead to areas with 1st factories as new- expensive- machines are invented)

England and France both more than 20% urban by 1800

Inflation

Scale of economic activity increased after 1730 due to demographic growth. (more people means demand for more food, goods, etc…) Generally mild, supports econ growth b/c people are making profits.

Sometimes inflation would get out of hand due to debt, war, etc… and cause problems

Rents rose considerable (land shortage) wages rose less quickly- gap between rich/poor increased (a major theme of IR)

South Sea Bubble Mississippi Bubble

1720 South Sea Co: Eng joint stock Co with monopoly on slave trade and rights to national debt. (investors make $$ as gov’t pays back debt)

But gov’t doesn’t pay- Co gives out more stock instead of profits, leading to a speculative frenzy which burst. Took Eng. Gov’t 20 years to pay off debt

1720 Mississippi Co: Fr joint stock Co with monopoly on trade in Fr. Louisiana- and took over national debt.

Same problem as Eng, but in France, the gov’t never gets rid of the debt- will become a key feature in issues which lead to Fr. Revolution

The Early Industrial RevolutionWhat is it?

From 1650-1715 Europe is beginning to change. Used technology to get control of world’s waterways and tip the balance of power (in terms of civilizations) in their favor. Even more change will come between 1750-1850

Even more change will come between 1750-1850, until IR has changed virtually ever aspect of life.

Energy: human/animal will be replaced by machine (run by water and then steam)

2 major types of changes:– Technological– Environmental

Why Britain?Capitalism/Middle Class

Middle class (bourgeoisies) large and growing in Eng. Landowners were not the only ones with $$- entrepreneurs respected and admired.

Trade was expanding (even after Amer. Rev) Stock markets, flexible capital. Comparatively high literacy rates

Protestant work ethic World’s leading maritime

power (w/protection from Navigation Acts)

Bank of Eng est 1694- Entrepreneurial system.

Their mercantilism designed to benefit business econ, not royal econ

Agricultural Revolution

Increased productivity of land- while needing fewer workers. Peasants become wage laborers- willing and able to move to other jobs and other places for better opportunity.

Demand for goods increasing since people are no longer as likely to be self sufficient agricultural population

Population

English pop has an overall better diet, dependable food supply, and good econ – which encouraged people to marry earlier and have more kids- bigger pop. Death rate falling as well

Transport

Before steam- water transportation was the cheapest and most effective way of moving goods.

England has plenty of navigable rivers, and is flat for building canals if there is an area w/o a good river.

Nowhere in Eng is more than 20 miles from navigable Water.

John Macadam- 1756 created hard surfaced roads (Tarmac)

Isolation from continent- borders are secure

Stable Gov’t

Civil wars over- strong Constitutional Monarchy (unlike absolutist Fr, Sp, or Aus)

House of Commons represents interests of businessmen- gov’t supports business efforts

Limited monarchy meant they couldn’t dominate economy

Don’t fight wars @ home- no disruptions

Lowes Act- limited personal liability in Business

Early Inventions

England 1st area to experiment with new energy (lost most of their forrests- looking for other sources)

Coal heat is hotter than wood- helped make new steam engine effective

Steam Engines:– 1698 Thomas Savoy– 1705 Thomas Newcomen

– 1769 James Watt

Raw Materials: Steam engines need coal- England had lots, also had plenty of Iron deposits- the “building blocks of IR”

” Eng. Self Sufficient in key material-gave them an edge (Wales and N. Eng)

Henry Cort- developed process for smelting pig iron.

In 1850 Eng produced ½ world’s iron

Early Technological InnovationMass Production

One concept that helped create IR was

the idea of having all the products turn

out the same (as opposed to uniqueness of craftsmen) Pottery an early mass produce industry- (“China” from

Asia already uniform- it was popular, but expensive, they set out to copy) Josiah Wedgewood broke process down- workers specialized in specific chores done over and over. Created molds so all pieces turned out identically

Textiles

Another early industry, esp. for cotton (grown elsewhere, but processed in Eng)

By 1830s Eng was center of textile industry (maintained even after cotton gin 1793- made it profitable for Amer to grow)

Popular b/c it was more comfortable than wool, and easier to clean

Technology made process faster- in 1790 could make thread 10x faster than 1770.

1820 processed ½ of world’s cotton cloth- and cotton made up ½ of Eng’s exports.

Iron

Also experienced breakthroughs which made process possible on a large scale.

Abraham Darby- discovered coke could be used for smelting

Transportation

Necessary to transport finished goods as well as deliver raw materials

Connected various industries (coal, steel and textile)

1807 Robert Fulton made steamboat- 2 way river travel @ same speed

Interchangeable Parts

Eli Whitney- standardized parts for all versions of same machine- so if it breaks you replace part- not machine

Power: the Steam Engine

Most important invention. Never tired, or dry, or frozen etc…

James Watt created for mining (pump water)- quickly took the place of human/water power

Most fundamental change of tech in early modern age- radically transformed the way humans work- it can work when you are not

The Factory System

New machines were large and expensive- not doable for “cottage” industry. Made far more sense to bring workers to machines.

Strict division between workers and managers, and division of

labor on factory floor:

men/women,

skilled/unskilled.

Towards a Global Economy

Atlantic trade routes became even more important as need to markets and raw materials expands (trade still dominates 18c- industry will take over in 19c)

Decline in supply of gold/silver meant gov’ts often short of $$. Est. public and private banks- began wider circulation of paper $$. Bank of England (banknotes) est 1694

Bullionism: Countries sought to create and protect reserves of gold/silver- try to avoid paying with those- use paper currency (which they control) instead

Mercantile Empires

Majority of trade is still done in Europe (wheat, timber, wine, wool) but those with overseas empires had an edge.

At the beginning of 1700s Spain was already far behind, Dutch beginning to lose steam. England and France are starting a battle for dominance that will shape foreign and economic policy for a century

A country’s goal- through their colonies- was to be self sufficient, you wanted a “favorable balance of trade” (more going out than coming in)

Sugar, tobacco, cotton, indigo major products.

Only England sending large #s of people to LIVE in their colonies at this point

Decline of Dutch

At the beginning of the 17c the Netherlands was the leading merchant maritime power. Trade was perfect occupation for them- since “low” countries were a challenging environment

Age of Louis XIV challenging for them- get sucked into frequent wars

As Eng and Fr take over more trade- they go into finance

Anglo Dutch Wars: 1652-1674 fought 3 wars with England which damaged their colonial power (ex. lost New Amsterdam in 1664)

1st country to perfect paper $$ (though not 1st to issue) 1st “stockmarket” in Euro in Amsterdam

Rise of England and France

By 1700 both highly centralized, but two different styles of government (constitutionalism and absolutism).

Ran their colonies differently as well- Eng colonies were fairly independent and populous- French had a military gov’t and fairly small population.

Building increasing navies to protect trade- Naval power will become a key feature for them both

Navigation Acts

Created by England to increase colonial mercantile control. Original goal was to steal Dutch carrying trade- came to say that colonies could ONLY trade w/Eng and transport on Eng ships

The Atlantic Economy

Age of Exploration had connected East and West hemispheres. Colonial products (some which originated in new world- like tobacco, some which came from old, but were grown in new- like sugar) came to be major features in world econ.

Sugar- 1st really important agricultural “industry” (has to be processed) slave labor, plantation system

Atlantic Circuit

Clockwise pattern of sea routes- “triangle trade”.

Europe->Africa: guns, cotton cloth, manufactured goods. Buy gold, ivory and SLAVES. Africa-> New World (Caribbean): Slaves. Pick up raw materials, esp. sugar and tobacco. New World -> Euro: raw materials taken to Euro and processed to start over again

Main areas involved: West Indies, Eng/Fr, West Coast of Africa.

New world provided raw materials like fish, timber, fur, and rice

Caribbean provided sugar, molasses, rum

VERY profitable- didn’t always follow Navigation Acts

The Slave Trade

Slavery wasn’t new to Africa, or to Europe (though it had never been a major feature there) Muslims loved African slaves (exotic)

But the wide scale transport WAS new. Portuguese began as early as 1441.

Europeans didn’t usually capture slaves, had other Africans do it for them

Portuguese traded- but British transported- about ½ of all slaves came on Eng ships.

Trade heaviest from 1650-1750, dwindled after 1780, outlawed in 1820.

Approx. 10 million Africans brought to new world- vast majority to Caribbean

The Middle Passage

Voyage took 4-10 weeks (depending on destination and time of year) in specially built ships. Slaves kept chained- even on boat- which had nets on side in case of jumps

20-30% died en route (more before 1700- scientific studies commissioned to discover proper techniques, ratios etc….