2. The growth of London and its impact on economic development

Question 1

Population growth of London

Answer 1

• Mid-17th century - became the largest city of Western Europe - pop. 400,000 - by 1700 - 575,000

Question 2

Why do many historians believe that the growth of the Stuart economy and the success of the fledging empire was due to the growth of London?

Answer 2

• City was ideally placed to power the economy, at the heart of the road and shipping network
• Could support the increasing demand for goods as well as being home to new investment banking industry
• London’s economy grew as a result of a number of simultaneous minor developments

Question 3

Reasons for growth of London:

Answer 3

• Banking and insurance industries
• Legal system
• Transport
• Demographic growth
• Skilled and educated workers
• Number of markets

Question 4

Banking and insurance industries

Answer 4

Based in London - provided employment and the capital needed to maintain merchants and businesses

Question 5

Legal system in London

Answer 5

• London = centre of the legal system - with Inns of Court, where training took place, all in the city (training in law a well-respected career path among the gentry)
• Most high-profile lawyers based there
• Membership of one of the Inns of Court essential for any aspiring barrister

Question 6

Transport in London

Answer 6

• Had been improving since Tudor times

- Investment in some roads and with the River Thames navigable for much of its length

Question 7

Demographic growth in London

Answer 7

• Surpassed other towns - wealth of opportunities made it more attractive place to live and work

Question 8

Skilled and educated workers

Answer 8

• More likely to move to London - it offered more than simply subsistence work

Question 9

Vast number of markets in London

Answer 9

• Meant that it was the focal point for economic activity in the South East
• By the middle of century - the national prices of livestock, grain and cloth dictated by the London market

Question 10

London importance in trade

Answer 10

• Number of chartered companies - interests were in trade and exploration - based in London - East India Company (1600), the Levant Company (1581) and the Muscovy Company (1555)
• By 1688 - not only centre of British trade - hub of European market that relied on the port of the city
• As world trade grew - London grew and the risk associated with trade became greater

Question 11

Summary: importance of London

Answer 11

• The economic, political and religious capital of England resulting in migration of not only poor workers from the countryside and towns - but the gentry and their families
• Presence of merchants, insurers, bankers, barristers and govt civil servants led to a growth of employment in London

Question 12

What did the increasing risk of world trading lead to?

Answer 12

• Merchants became acutely aware of the need to insure their ships and goods, leading to a boom in the insurance industry