Slide 1

Slide 2 http://www.youtube.com/watch?v=b3fYF6YvesA Slide 3 Overvie w Commoditiesmainly silver, but also including agricultural productsfrom the Americas led to: 1. A marked increase in many areas of industry due to increased money circulation. 2. The revival of the economic notion of capitalism and the introduction of mercantilism. 3. Population growth from the foods obtained through the Columbian Exchange. Slide 4 Silver Imports Spain obtained approximately 180 tons of gold and 8200 tons of silver through its toil in the New World and an unknown amount through smuggling (Walton 85). Spain obtained approximately 180 tons of gold and 8200 tons of silver through its toil in the New World and an unknown amount through smuggling (Walton 85). The quantities of silver acquired by Spain passed from Spain to Italian and German merchants, thus affecting the entire continent (Chambers 397). The quantities of silver acquired by Spain passed from Spain to Italian and German merchants, thus affecting the entire continent (Chambers 397). In 1545, the Spaniards discovered an enormous amount of silver at Potos; the silver from these mines contributed to much of Spains silver imports (Chambers 405). In 1545, the Spaniards discovered an enormous amount of silver at Potos; the silver from these mines contributed to much of Spains silver imports (Chambers 405). Slide 5 Inflation and Price Revolution Websters New World Dictionary defines inflation as the: increase in circulation resulting in a fall in its value and a rise in prices (166). Websters New World Dictionary defines inflation as the: increase in circulation resulting in a fall in its value and a rise in prices (166). In other words, this means that more money is available for a fixed amount of products, leading to a decrease in the purchasing power of each currency unit. In other words, this means that more money is available for a fixed amount of products, leading to a decrease in the purchasing power of each currency unit. From 1500 to 1600, inflation totaled 75 percent in Spain, growing steadily at about one to two percent a year. By the mid 1600s on the European continent, the quantity of gold had increased by one-fifth and the quantity of silver had tripled (Chambers 397). By the mid 1600s on the European continent, the quantity of gold had increased by one-fifth and the quantity of silver had tripled (Chambers 397). Slide 6 Results of Inflation Peasant protests over the increased prices in relation to wages. Peasant protests over the increased prices in relation to wages. Reduced debts (the value of a loan grew less and less each year). Reduced debts (the value of a loan grew less and less each year). Boosted profits (Chambers 397). Boosted profits (Chambers 397). In Spain, landowners raised rents and replaced tenants. In Spain, landowners raised rents and replaced tenants. The increasing gap between wages and prices increased the opportunity to accumulate capital (Lynch 390). The increasing gap between wages and prices increased the opportunity to accumulate capital (Lynch 390). Slide 7 Results of Inflation (cont.) http://csmres.jmu.edu/geollab/fichter/GS102/2008PowerPoints/29-GreatWave-GG102.pdf Slide 8 Commercial Revolution Allegory of Trade by Jost Amman glorifies the world of the merchant. The bottom left shows the shipment of goods, the bottom right shows bankers keeping accounts, and the middle shows the various transactions taking place. http://www.wallsave.com/wallpapers/1920x1080/goya/733548/goya-allegory-of-trade-amman-jost-733548.jpg Slide 9 http://kids.britannica.com/comptons/art-109695/Early-16th-century-bankers-stored-gold-and-silver-for-depositors Bankers counting, storing, and exchanging currency. Increasingly complicated exchanges and bookkeeping (Chambers 398). The Moneylender and his Wife by Quentin Massys http://en.wikipedia.org/wiki/File:Matsys_the_moneylender.jpg Commercial Revolution (cont.) Slide 10 Capitalism The Random House College Dictionary defines capitalism as an economic system in which investment in and ownership of the means of production, distribution, and exchange of wealth is made and maintained chiefly by private individuals or corporations. The Random House College Dictionary defines capitalism as an economic system in which investment in and ownership of the means of production, distribution, and exchange of wealth is made and maintained chiefly by private individuals or corporations. The individuals that engaged in capitalistic enterprises were generally motivated by their desire for profit (Viault 80) or the accumulation of capital for its own sake (Chambers 398). The individuals that engaged in capitalistic enterprises were generally motivated by their desire for profit (Viault 80) or the accumulation of capital for its own sake (Chambers 398). Many merchants gained great wealth from overseas trade, and many used their profits to finance more voyages and/or to start trading companies (Age of Exploration 14). Many merchants gained great wealth from overseas trade, and many used their profits to finance more voyages and/or to start trading companies (Age of Exploration 14). Bankers and merchants who lent their capital in the hopes of great profit did so with great risk; it could take months or years before a return was collected (Chambers 398). Bankers and merchants who lent their capital in the hopes of great profit did so with great risk; it could take months or years before a return was collected (Chambers 398). Some of the silver imported from the New World was redirected towards financing imports of spices and luxuries from Asia (The Impact of Expansion). Some of the silver imported from the New World was redirected towards financing imports of spices and luxuries from Asia (The Impact of Expansion). Slide 11 Growth of Industry As a result of exploration, more raw materials entered Europe (Age of Exploration 14). As a result of exploration, more raw materials entered Europe (Age of Exploration 14). New ocean trading routes sparked an industrial increase in shipbuilding (Krieger 66). New ocean trading routes sparked an industrial increase in shipbuilding (Krieger 66). The expansion of cities led to a greater demand for various skills. As a result, guilds allowed the widows of guild members to take over their husbands trades (Chambers 400). The expansion of cities led to a greater demand for various skills. As a result, guilds allowed the widows of guild members to take over their husbands trades (Chambers 400). In order to bypass the restrictive guild system, capitalists pioneered the putting-out system in which entrepreneurs provided cloth, looms, and other equipment to rural families (Krieger 67). In order to bypass the restrictive guild system, capitalists pioneered the putting-out system in which entrepreneurs provided cloth, looms, and other equipment to rural families (Krieger 67). http://cdn.dipity.com/uploads/events/35950c69951ccf0d14665d4956a79e33_1M.png Slide 12 International trade required enormous amounts of capital to: International trade required enormous amounts of capital to: 1.Arm merchant ships 2.Buy special privileges for local authorities 3.Build trading posts In a joint-stock company, investors (generally capitalists) bought shares of ownership, which would translate as either proportional loss or proportional profit. In a joint-stock company, investors (generally capitalists) bought shares of ownership, which would translate as either proportional loss or proportional profit. The English and the Dutch both formed joint-stock companies to reduce risks and to maximize profits (Krieger 67). The English and the Dutch both formed joint-stock companies to reduce risks and to maximize profits (Krieger 67). Dutch East India Company http://en.wikipedia.org/wiki/File:Voc.jpg Slide 13 Columbi an Exchang e http://pomi.us.com/images/tomatoes.jpg http://blogs.mcall.com/.a/6a00d8341c4fe353ef017743f66955970d-800wi http://img.21food.com/20110609/product/1306411929323.jpg http:// www.shrilalmahal.org/products/DK-Tobacco.jpg Old World (Krieger 64). PotatoesTomatoes MaizeTobacco Slide 14 Columbi an Exchang e http:// blog.caloricious.com/wp-content/uploads/2011/03/whole-wheat1.jpg http:// aroundtheplate.org/wp-content/uploads/2012/03/rice.jpg http:// www.ericcressey.com/wp-content/uploads/2011/11/cof.jpg http:// drawsketch.about.com/od/learntodrawhorses/ss/horse-drawing_6.htm Old World (Krieger 64). Sugar Cane Wheat CoffeeHorses Slide 15 Wealth accumulated from the New World (for example, from Caribbean sugar plantations) led to a dramatic increase in the power of the European continent. Wealth accumulated from the New World (for example, from Caribbean sugar plantations) led to a dramatic increase in the power of the European continent. New crops revolutionized the European diet and helped feed a growing population as well as increasing mortality rates due to varied diets (Krieger 65). New crops revolutionized the European diet and helped feed a growing population as well as increasing mortality rates due to varied diets (Krieger 65). The New World added another entity to export products to, thereby promoting mercantilism. The New World added another entity to export products to, thereby promoting mercantilism. Consequences of the Columbian Exchange Slide 16 Mercantilis m The world [contains] a fixed amount of wealth and each nation could enrich itself only at the expense of others (Chambers 450). Rulers tried to reduce the items they bought from other countries and increase the items they sold: exports over imports (Age of Exploration 15). Rulers tried to reduce the items they bought from other countries and increase the items they sold: exports over imports (Age of Exploration 15). Therefore, state control of industry was needed, including a system of high tariffs, encouragement of native industries, and the allocation of resources (Chambers 450). Therefore, state control of industry was needed, including a system of high tariffs, encouragement of native industries, and the allocation of resources (Chambers 450). The New World served as the base to this system, providing the raw materials for a nations industries (Age of Exploration 15). The New World served as the base to this system, providing the raw materials for a nations industries (Age of Exploration 15). Slide 17 References "The Age of Exploration." History Alive! The United States Through Industrialism. N.p., n.d. Web. 16 Dec. 2012.. Chambers, Mortimer. The Western Experience. Boston: McGraw-Hill, 2007. Print. Goldman, Jonathan L. Webster's New World Pocket Dictionary. Foster City, CA: IDG Worldwide, 2000. Print. "The Impact of Expansion." Big Site of History. N.p., n.d. Web. 17 Dec. 2012.. Krieger, Larry. AP European History: Crash Course. Piscataway, NJ: Research & Education Association, 2010. Print. Lynch, John. "Spain During the Price Revolution." Global History and Geography. N.p., n.d. Web. 17 Dec. 2012.. Viault, Birdsall S. Modern European History. New York: McGraw-Hill, 1990. Print. Walton, Timothy R. The Spanish Treasure Fleets. Sarasota, FL: Pineapple, 1994. Print.