3.3 Continuities and Changes to Economic Practice and Development from 1648-1815
3 min read•january 18, 2023
Catherine Brown
Jillian Holbrook
Catherine Brown
Jillian Holbrook
The rise of England, Spain, and the Netherlands in the 17th century is contextualized by economic changes and commercial developments!
By 1450, the European population slowly began to recover from the Black Death, rising until the mid-17th century. The commercial and manufacturing center shifted from the Mediterranean to northwestern Europe, and England and France joined the Spanish in establishing overseas colonies, while Dutch traders explored new trade routes to the East Indies (Southeast Asia). Spain, France, and England emerged as the leading colonial empires, establishing colonies and developing worldwide trade networks.
The Dutch would also experience a Golden Age in the 17th century, yet both the Dutch United Provinces and Spain declined by the end of the century.
The Agricultural and Commercial Revolutions
The Agricultural Revolution
Increased agricultural production and the expansion of trade drove economic changes in the 16th and 17th centuries. The Agricultural Revolution, especially in Britain, greatly increased food production and further boosted the population. This, in turn, increased the demand for food, which, again, could be met by increased production. Thus, a positive feedback loop formed. Farmers adopted a four-field rotation system, making the soil more fertile and increasing food production in comparison to the Medieval two-field crop rotation system.
Pasture land was converted to arable farming land, bringing more land into cultivation, and in the Netherlands, the Dutch reclaimed thousands of acres of land from the sea, converting it to farmland. Most agricultural progress and the manufacturing improvements that accompanied it took place in Western Europe.
In addition, new trade routes fueled the establishment of colonies that provided agricultural goods and resources. Most notably, agricultural goods from the Americas, such as potatoes and corn, greatly increased the European population and fueled a demand for more goods.
Population growth also provided the labor and demand for small-scale manufacturing of textiles and metal goods. In the cottage industry (also known as the putting-out system), textile manufacturers utilized rural labor. Peasant families spun or wove cloth and linens at home and then sent them to manufacturers, where they were made into finished products.
The expansion of trade and the increase in agricultural and manufactured commodities combined with population increases helped create a price revolution and a more globally interconnected economy. 🧶
Spain’s discovery of gold and silver in the Americas (most notably in Peru) created inflation and rising prices, which took a heavier toll on poorer populations and created an economic depression in the late 1600s, contributing to the decline of the Spanish Empire.
The Commercial Revolution
A more global economy also caused a shift from town-and-guild-centered economies to nation-centered economic systems. It fueled the rise of merchant capitalists. Merchants and bankers, such as the Medici in Italy and the Fuggers in Germany, emerged as successful entrepreneurs who could finance new opportunities. Expanding trade networks with the Americas and Asia provided new outlets for European goods. The printing press created a market for books and print material, trade fueled shipbuilding enterprises, and larger militaries increased the need for cannons and muskets.
These changes contributed to the Commercial Revolution: changes in the trade-based economy that led to a growing middle class, an accumulation of wealth and entrepreneurship, and changes in business practices. Bills of exchange helped develop the banking industry, as bankers provided loans with interest. Joint-stock companies invested in overseas ventures, such as the Virginia Company, which established England’s first permanent colony in the Americas: Jamestown. 💸
Finally, there was an overall shift in Europe’s economic centers. The Italian city-states like Venice lost their monopoly on trade with Asia as new overseas routes were established, shifting economic centers to northwest Europe. The rise of capitalism increased investments, privatized land and businesses, and gave rise to a market economy in which the bourgeoisie (middle-class entrepreneurs) enjoyed more power and influence.
🎥 Watch: AP European History - Economics & Society (1450-1789)
Key Terms to Review (34)
Agricultural goods from the Americas
: These are crops and livestock that originated in America but were introduced to Europe after contact between two continents was established. Examples include potatoes, corn, tomatoes, etc.Agricultural Revolution
: The Agricultural Revolution refers to the significant changes in farming practices that occurred during the 18th and early 19th centuries in Europe. These changes, which included crop rotation and selective breeding of livestock, led to a massive increase in food production.Americas and Asia expanding trade networks
: This refers to the expansion of trade routes between the Americas and Asia during the Age of Exploration, which led to increased economic interconnectivity and cultural exchange.Arable farming land
: Arable farming land refers to the type of land suitable for growing crops. It's fertile, well-drained and typically enriched with necessary nutrients that support plant growth.Bills of exchange development of banking industry
: Bills of exchange refer to written orders used primarily in international trade that bind one party to pay a fixed sum of money to another party at a predetermined future date. Their use played a significant role in developing modern banking systems.Black Death
: The Black Death was a devastating global epidemic of bubonic plague that struck Europe and Asia in the mid-1300s. It killed an estimated 25 million people, or about one-third of Europe's population.Bourgeoisie
: The bourgeoisie is a social class that emerged during the middle ages in Europe, typically characterized by their ownership of capital and their role in commerce and industry. They are often referred to as the middle-class entrepreneurs.Capitalism rise
: The rise of capitalism refers to the emergence and growth of economic systems characterized by private property ownership, competition, profit motive, and free market principles during late Middle Ages into Early Modern period Europe.Colonial Empires
: A colonial empire is a collection of territories (colonies) governed by a foreign state. In the context of European history, this often refers to the overseas territories controlled by European powers from the 15th to 20th centuries.Cottage Industry (Putting-out system)
: A method of production in which tasks are done by individuals in their rural homes, rather than being done in a centralized factory. This was common during the Industrial Revolution before factories became prevalent.Dutch trade routes
: These are paths used for commercial trade by Dutch merchants during their Golden Age (17th century). They spanned across Europe, Asia, Africa and America allowing them to dominate global commerce for a time.Dutch United Provinces
: The Dutch United Provinces was a confederation of seven provinces in the Netherlands that existed from 1581 to 1795, achieving independence from Spain and becoming a major maritime and economic power.East Indies
: A term used by Europeans to refer to what is now known as Southeast Asia, including the Indonesian Archipelago and surrounding islands.Economic depression in late 1600s Spain
: This refers to a period of economic downturn in Spain during the late 17th century, characterized by high inflation, unemployment, and poverty.Four-field rotation system
: The four-field rotation system is a method of farming that involves dividing land into four sections or fields. Different crops are grown on each field every year in a rotating sequence, which helps maintain soil fertility over time.Fuggers in Germany
: The Fuggers were a German mercantile and banking dynasty that emerged in Augsburg during the 15th century. They became one of Europe's most powerful families through trade and banking activities.Gold and Silver Discovery in Americas (Peru)
: The discovery and subsequent mining/extraction activities related to gold and silver deposits found mainly in South America (particularly Peru) during the 16th century by Spanish conquistadors.Jamestown
: Jamestown was England’s first permanent colony in North America, founded in 1607 by settlers from the Virginia Company.Joint-stock companies investment in overseas ventures
: A joint-stock company is a business entity where different stocks can be bought and owned by shareholders. During the Age of Exploration, these companies were used to fund overseas ventures.Medici in Italy
: The Medici were a powerful and influential family in Florence, Italy from the 13th to the 17th century. They were known for their patronage of the arts, political influence, and banking prowess.Medieval two-field crop rotation system
: The medieval two-field crop rotation system was a farming method used during the Middle Ages where farmland was divided into two parts. One part would be planted with crops while the other lay fallow (unused) for a year to restore its fertility.Mediterranean
: The Mediterranean is a sea connected to the Atlantic Ocean surrounded by the Mediterranean Basin and almost completely enclosed by land. It has been historically important for trade and warfare among ancient civilizations.Merchant capitalists
: Individuals who used their wealth to invest in trade and goods for profit. They played a significant role during the Commercial Revolution.Netherlands farmland reclamation
: Netherlands farmland reclamation refers to the process by which the Dutch have historically converted water bodies into usable agricultural or residential lands using various techniques such as dikes and windmills.New trade routes establishment of colonies
: This refers to the creation of new paths for trade and commerce, often by sea, which led to the establishment of colonies in unexplored lands during the Age of Exploration.Northwestern Europe
: Northwestern Europe refers to a region of Europe that includes countries such as the United Kingdom, Ireland, Belgium, Netherlands, Germany, and Scandinavia. It's known for its economic prosperity and democratic institutions.Potatoes and corn importation to Europe
: This refers to the process of bringing potatoes and corn from the Americas to Europe for cultivation and consumption.Small-scale Manufacturing
: The production of goods on a small scale, often involving manual labor and low levels of automation. It typically involves fewer employees and lower volume of sales than large-scale manufacturing.Spanish overseas colonies
: These were territories claimed and governed by Spain outside of the Iberian Peninsula, primarily in the Americas, Asia, Africa and Oceania from the late 15th to early 19th centuries.The Commercial Revolution
: A period from roughly 1500-1800 where European commerce expanded on a global scale with innovations in banking, business practices, and trade routes.The printing press market for books and print material
: This refers to the surge in demand and production of books and other printed materials following the invention of the printing press by Johannes Gutenberg in the 15th century.Virginia Company
: The Virginia Company was a joint-stock company chartered by King James I of England in 1606 to establish colonies in the New World. It was responsible for founding Jamestown, the first permanent English settlement in North America.Western Europe manufacturing improvements
: This refers to the advancements and innovations made in manufacturing processes in Western Europe, particularly during the Industrial Revolution, which increased efficiency and productivity.Worldwide Trade Networks
: These are interconnected routes or systems across which goods, ideas, information and people move globally. They were established between Europe, Asia, Africa and Americas during Age of Exploration.3.3 Continuities and Changes to Economic Practice and Development from 1648-1815
3 min read•january 18, 2023
Catherine Brown
Jillian Holbrook
Catherine Brown
Jillian Holbrook
The rise of England, Spain, and the Netherlands in the 17th century is contextualized by economic changes and commercial developments!
By 1450, the European population slowly began to recover from the Black Death, rising until the mid-17th century. The commercial and manufacturing center shifted from the Mediterranean to northwestern Europe, and England and France joined the Spanish in establishing overseas colonies, while Dutch traders explored new trade routes to the East Indies (Southeast Asia). Spain, France, and England emerged as the leading colonial empires, establishing colonies and developing worldwide trade networks.
The Dutch would also experience a Golden Age in the 17th century, yet both the Dutch United Provinces and Spain declined by the end of the century.
The Agricultural and Commercial Revolutions
The Agricultural Revolution
Increased agricultural production and the expansion of trade drove economic changes in the 16th and 17th centuries. The Agricultural Revolution, especially in Britain, greatly increased food production and further boosted the population. This, in turn, increased the demand for food, which, again, could be met by increased production. Thus, a positive feedback loop formed. Farmers adopted a four-field rotation system, making the soil more fertile and increasing food production in comparison to the Medieval two-field crop rotation system.
Pasture land was converted to arable farming land, bringing more land into cultivation, and in the Netherlands, the Dutch reclaimed thousands of acres of land from the sea, converting it to farmland. Most agricultural progress and the manufacturing improvements that accompanied it took place in Western Europe.
In addition, new trade routes fueled the establishment of colonies that provided agricultural goods and resources. Most notably, agricultural goods from the Americas, such as potatoes and corn, greatly increased the European population and fueled a demand for more goods.
Population growth also provided the labor and demand for small-scale manufacturing of textiles and metal goods. In the cottage industry (also known as the putting-out system), textile manufacturers utilized rural labor. Peasant families spun or wove cloth and linens at home and then sent them to manufacturers, where they were made into finished products.
The expansion of trade and the increase in agricultural and manufactured commodities combined with population increases helped create a price revolution and a more globally interconnected economy. 🧶
Spain’s discovery of gold and silver in the Americas (most notably in Peru) created inflation and rising prices, which took a heavier toll on poorer populations and created an economic depression in the late 1600s, contributing to the decline of the Spanish Empire.
The Commercial Revolution
A more global economy also caused a shift from town-and-guild-centered economies to nation-centered economic systems. It fueled the rise of merchant capitalists. Merchants and bankers, such as the Medici in Italy and the Fuggers in Germany, emerged as successful entrepreneurs who could finance new opportunities. Expanding trade networks with the Americas and Asia provided new outlets for European goods. The printing press created a market for books and print material, trade fueled shipbuilding enterprises, and larger militaries increased the need for cannons and muskets.
These changes contributed to the Commercial Revolution: changes in the trade-based economy that led to a growing middle class, an accumulation of wealth and entrepreneurship, and changes in business practices. Bills of exchange helped develop the banking industry, as bankers provided loans with interest. Joint-stock companies invested in overseas ventures, such as the Virginia Company, which established England’s first permanent colony in the Americas: Jamestown. 💸
Finally, there was an overall shift in Europe’s economic centers. The Italian city-states like Venice lost their monopoly on trade with Asia as new overseas routes were established, shifting economic centers to northwest Europe. The rise of capitalism increased investments, privatized land and businesses, and gave rise to a market economy in which the bourgeoisie (middle-class entrepreneurs) enjoyed more power and influence.
🎥 Watch: AP European History - Economics & Society (1450-1789)
Key Terms to Review (34)
Agricultural goods from the Americas
: These are crops and livestock that originated in America but were introduced to Europe after contact between two continents was established. Examples include potatoes, corn, tomatoes, etc.Agricultural Revolution
: The Agricultural Revolution refers to the significant changes in farming practices that occurred during the 18th and early 19th centuries in Europe. These changes, which included crop rotation and selective breeding of livestock, led to a massive increase in food production.Americas and Asia expanding trade networks
: This refers to the expansion of trade routes between the Americas and Asia during the Age of Exploration, which led to increased economic interconnectivity and cultural exchange.Arable farming land
: Arable farming land refers to the type of land suitable for growing crops. It's fertile, well-drained and typically enriched with necessary nutrients that support plant growth.Bills of exchange development of banking industry
: Bills of exchange refer to written orders used primarily in international trade that bind one party to pay a fixed sum of money to another party at a predetermined future date. Their use played a significant role in developing modern banking systems.Black Death
: The Black Death was a devastating global epidemic of bubonic plague that struck Europe and Asia in the mid-1300s. It killed an estimated 25 million people, or about one-third of Europe's population.Bourgeoisie
: The bourgeoisie is a social class that emerged during the middle ages in Europe, typically characterized by their ownership of capital and their role in commerce and industry. They are often referred to as the middle-class entrepreneurs.Capitalism rise
: The rise of capitalism refers to the emergence and growth of economic systems characterized by private property ownership, competition, profit motive, and free market principles during late Middle Ages into Early Modern period Europe.Colonial Empires
: A colonial empire is a collection of territories (colonies) governed by a foreign state. In the context of European history, this often refers to the overseas territories controlled by European powers from the 15th to 20th centuries.Cottage Industry (Putting-out system)
: A method of production in which tasks are done by individuals in their rural homes, rather than being done in a centralized factory. This was common during the Industrial Revolution before factories became prevalent.Dutch trade routes
: These are paths used for commercial trade by Dutch merchants during their Golden Age (17th century). They spanned across Europe, Asia, Africa and America allowing them to dominate global commerce for a time.Dutch United Provinces
: The Dutch United Provinces was a confederation of seven provinces in the Netherlands that existed from 1581 to 1795, achieving independence from Spain and becoming a major maritime and economic power.East Indies
: A term used by Europeans to refer to what is now known as Southeast Asia, including the Indonesian Archipelago and surrounding islands.Economic depression in late 1600s Spain
: This refers to a period of economic downturn in Spain during the late 17th century, characterized by high inflation, unemployment, and poverty.Four-field rotation system
: The four-field rotation system is a method of farming that involves dividing land into four sections or fields. Different crops are grown on each field every year in a rotating sequence, which helps maintain soil fertility over time.Fuggers in Germany
: The Fuggers were a German mercantile and banking dynasty that emerged in Augsburg during the 15th century. They became one of Europe's most powerful families through trade and banking activities.Gold and Silver Discovery in Americas (Peru)
: The discovery and subsequent mining/extraction activities related to gold and silver deposits found mainly in South America (particularly Peru) during the 16th century by Spanish conquistadors.Jamestown
: Jamestown was England’s first permanent colony in North America, founded in 1607 by settlers from the Virginia Company.Joint-stock companies investment in overseas ventures
: A joint-stock company is a business entity where different stocks can be bought and owned by shareholders. During the Age of Exploration, these companies were used to fund overseas ventures.Medici in Italy
: The Medici were a powerful and influential family in Florence, Italy from the 13th to the 17th century. They were known for their patronage of the arts, political influence, and banking prowess.Medieval two-field crop rotation system
: The medieval two-field crop rotation system was a farming method used during the Middle Ages where farmland was divided into two parts. One part would be planted with crops while the other lay fallow (unused) for a year to restore its fertility.Mediterranean
: The Mediterranean is a sea connected to the Atlantic Ocean surrounded by the Mediterranean Basin and almost completely enclosed by land. It has been historically important for trade and warfare among ancient civilizations.Merchant capitalists
: Individuals who used their wealth to invest in trade and goods for profit. They played a significant role during the Commercial Revolution.Netherlands farmland reclamation
: Netherlands farmland reclamation refers to the process by which the Dutch have historically converted water bodies into usable agricultural or residential lands using various techniques such as dikes and windmills.New trade routes establishment of colonies
: This refers to the creation of new paths for trade and commerce, often by sea, which led to the establishment of colonies in unexplored lands during the Age of Exploration.Northwestern Europe
: Northwestern Europe refers to a region of Europe that includes countries such as the United Kingdom, Ireland, Belgium, Netherlands, Germany, and Scandinavia. It's known for its economic prosperity and democratic institutions.Potatoes and corn importation to Europe
: This refers to the process of bringing potatoes and corn from the Americas to Europe for cultivation and consumption.Small-scale Manufacturing
: The production of goods on a small scale, often involving manual labor and low levels of automation. It typically involves fewer employees and lower volume of sales than large-scale manufacturing.Spanish overseas colonies
: These were territories claimed and governed by Spain outside of the Iberian Peninsula, primarily in the Americas, Asia, Africa and Oceania from the late 15th to early 19th centuries.The Commercial Revolution
: A period from roughly 1500-1800 where European commerce expanded on a global scale with innovations in banking, business practices, and trade routes.The printing press market for books and print material
: This refers to the surge in demand and production of books and other printed materials following the invention of the printing press by Johannes Gutenberg in the 15th century.Virginia Company
: The Virginia Company was a joint-stock company chartered by King James I of England in 1606 to establish colonies in the New World. It was responsible for founding Jamestown, the first permanent English settlement in North America.Western Europe manufacturing improvements
: This refers to the advancements and innovations made in manufacturing processes in Western Europe, particularly during the Industrial Revolution, which increased efficiency and productivity.Worldwide Trade Networks
: These are interconnected routes or systems across which goods, ideas, information and people move globally. They were established between Europe, Asia, Africa and Americas during Age of Exploration.
Resources
© 2024 Fiveable Inc. All rights reserved.
AP® and SAT® are trademarks registered by the College Board, which is not affiliated with, and does not endorse this website.