Chapter 2 Flashcards
(24 cards)
How was the pre-moderne ecobomy (before 1500) & who had power
Explain Malthus model & trade
Agrarian, no Space for economic growth.
Malthus factor : if pop 📈 then ppl poorer. If poorer = less 👶 = 💸📈 = 👶👶👶👶👶 = poorer. Etc
Only some innovations in China & Arabic
Long distance trade (luxury goods ex lapis lazulis 💎)
What is the main change in mentality’s after 1500
Scientific revolution.
Smith & spécialisation thanks to Intense trade, cheaper transport in Europe.
What was the position of China & Islam world before 1300
Is there other forms of capitalist power ?
Qing dinasty united lands before common Era. pioneers capitalists with private property
Italie 🇮🇹 & Germany 🇩🇪 city states = link w/ Arabic and Asian world.
Cottage / creation of financial economy (Bank = share, credits, engage public authority’s budget, debts & bills of exchange)
What happened in 13-14century ?
Monguls empire : temporary unification = more distance trade (transport costs)
What is the role of the Black Death in global economics ?
1/3 European died. 1347-1350 (from Monguls empire)
Got in Europe from trade w/ China.
When first European arrived to Asian, got arrested bcs what he brought was not silver or gold (poor economy)
How the discovery of America by Colomb affect he world global economy?
Columbian exchange enable eco & population 📈 : food & diseases (potatoes (feed ppl w/ poor soils), turkey, siphilis, horses…)
How do China & Japan reacted to European growth after Columbian exchange ?
Ming China = isolated (14-17s)
Japan Tokugawa period = isolated (17-19s) (high literacy- farming)
Under what leadership was Europe in the 16th century ?
Iberian : Spanish & Portuguese (had Asia) divided the world (America)
State Trade not open.
No change in economy keep all for themselves : Spanish crown = richer (extraction) Portuguese = did not change costs of goods.
Overland routes continued bcs no beneficial advantages.
What says the price of paper between 1500 to 1700 ?
Price super high bcs Portuguese monopoly.
1600, english & Dutch East Indies companies (supported by state) broke it and prices 📉
Creation of a competitive environment
What is the difference between Eurasian trade & Atlantic trade
Eurasian : eco climb but downward pressure. Too competitive environnement.
Atlantic : European controlled American political & commercial environment. Sugar, coffee etc.
How the Atlantic routes created the Urbanization of Europe in 1800 ?
Explosions of port towns w/ access to Atlantic (London, Liverpool, Cadiz etc) + Mediterranean towns
A global Sugar economy : 1600 industrial organisation & capital-intensive activity. Investment from traders-bankers, ppl w/ money. 📉 labour cost = Slavery = rise of capitalism.
What are the tree continents linked in the translatlantic economy production and trade ?
Black slaves to America (plantation economy)
Finished products from Europe and Asia (cotton cloths) to Africa
Production of plantations geared to consumptions in European money economy.
Was Luxuries still only for very rich ?
Was the first global economy a modern economy ?
Elasticity : economy of scale cut prices down + popularisation of rum, coffee, tea, cacao = mass demand for sugar.
Not yet : still semi luxurious product, local product = + demanded.
No big differences in wealth and dvlp. 1750 eco growth and prosperity but limited. Gap between richest and poorest nations = 1 to 5
What were the values of Europe from 1750 ?
With the example of 3 fields systems : Is the openness to innovation only a value ? What about Malthus trap ?
Work ethic : open to innovation, freedom, rationality etc. European values = hard work, honesty etc.
3 field = 1 winter, 1 summer 1 rest = restore fertility, self sufficiency
Mixed field = higher capital investements, more husbandry : new tools for urban market production.
1750 bit Malthus trap. Pop continued to growth
Dutch = innovative : Golden century agriculture & fishery, European trade, Industry
What is the creative destruction of Shumpters and what are his ideas
Entrepreunarial Spirit.
Crédit = debts = base for innovation and value creation (bank)
Theory of business cycles : new material well being, freedom, resources and idea so new motivation. (After Black Death)
Capitalism thanks to strong families support : leads to individualism. Free from parental control and marriage
What about marriage from 1500
Demography caused by eco factors
Western European marriage pattern 20% male no marriage (same China bcs birth control)
After Black Death : - workers = 📈 wages (female as well). High social control + animals = need women.
+ education, no famine = plans
How life expectancy affects individualism
Before 1700 poor life expectancy no difference between rich and poor but difference after
State awareness towards disease and cleanness
Why taxes arisen ?
European Union = competitive state system : founding wars = centralised fiscal system, elites founds and crédit with interest : trust in the state
Parliament = deal between state & ppl : legitimate taxes and access to credit (low rates)
How the state enable the Market to function & why Louis 14 was considered as a powerless king ?
La république c’est moi : absolutiste = les marchands fermiers = weak state
King share power : property right =+ secured
Dutch East Indian company 1602-1799 = alliance of merchants under pressure of public authority
Rule of law = equality = powerful gov & institutional stability guaranteed
When was the glorious revolution and what happened ?
What smiths says about gov ?
1688 : Parliament changed king : bills of rights = limit power of monarchy.
Diff ppl in parliaments w/ diff interests
Minimal gov good but at the time (18s) = stronge state infrastructure
How was acting the English and Dutch state ?
Eco role : property right = base for capitalism, creates a market. Time measure / shareholdings / Bank of England (note bank no longer private commercialisation)
Preserve domestic competitive / protectionism against foreign
Why the commercialisation of European society appears ? How was it created ?
Money market ( colonial trade = joint stock-companies)
rise of banks
Good from Asian and USA limited w/ Caribbean plantation and European prod
Consumer market (desire for variety & diff)
Wage market
Middle income = consumer revolution (- home made) / Huge demand
How Black Death influence commercialisation of labour ?
Diff north vs south (Europe)
Stop serfdom (England/ holand)
Skills premium (📈 wages)
17s repressive attitude towards begging / less holidays
«Slaves to want»
Most in northern countries (Spain / portugal = poor)
Conclusion : how the west growth by itself
European marriage pattern : individualism / investments / human capital / consumerism / innovation / life expectancy
Role of politics = favourable capitalism / protectionism / commercialisation of the eco (Dutch / England)
