Chapter 1 Flashcards
3 factors of capitalism
risk, inovation, invention
business cycle
high slope= boom
low slope bust
events contribute to boom or bust
3 indicators used to determine the business cycle
future leading
past lagging
present coincident
Panicks
1819, 1840, 1853, 1873, 1890, 1906, 1930
Mass Bay colony boom
Watertown people imigrating to avoid king and wanted reformation land boom 1630s and food boom land grant ambition to clear more land fairs and selling cows
Mass Bay recesion
Cromwell- ref of church and state leads to less immigration prices fell- overproduction people returned to England provision for por given families pulled out
Keyne
sustained economy by lending money
church prosecuted for making minescual profit
wanted advancement of bible + conscience
Concience secondary
Future Market
buying up excess stuff thinking might be valuable in the future
Moneylenders
humanists
Problems in germany for Ryff
Different currencies
saddle burn
custom tolls ex Busie + cologne
Early France Market
- have books but erattic about how they keep track of sales e.g zero,
- sometimes ust write down description of person
- cheating
- royal taxes
100 year war results
-king philip needs money
-pope comes to avignon and provides reneue
-kicks out the Jews in lumbarb
Knights Templar becomes money
Pope Clemet V courrptable betrays knights for money
Scientific Revolution
precapitalist saw birth of printing press, paper mill, windmill, mechanical clock, map, and other inventions including invention
not over night change
Leviathan
-Thomas Hobbes in 1651
Etching shows immense figure, king, sword, royal sceptrer, armor engraves with human being
-Only way for Universal Soveringty, submit to king, over king and freedom
-Social Contract Hobbes
-argument political no econ
-prevents humans from falling into conditions as “solitary, poore, nasty, brutish, and short.”
-vissions start as economic basis
-Worry of trading would be net loss of gold
-Wanted government to control trade to ensure net gain.
England’s Treasure by Forraign Trade
“ordinary means” for a nation to trade is to sell more than consume.”
Agents of Economic Progress Exploration
Explorers such as Christopher Columbus, Cortés, and Drake.
Mercnatilists who brought back gold to the state
National political units in Europe
Isolated Feudalism gave way to centralized monarchies
Lead to national spirit
favored certain industries, luxury goods, and army goods
gave way to better law and measruements to help mercahnts
Foreign adventure and explorers
Decay of Religion
Rise of Protestantism -which said it was okay to be a merchant
Rise of merchants gradually made it okay
Agents of production
Land labor capital
Middle Ages market
Ran through command and tradition. Ruled by lords
Cloth weaver France 1666
To try a new invention, obtain permission from 4 oldest merchants and 4 oldest weavers. Each guilde makes own thing. Gov fines if step out of line
Can a Christian be a merchant?
No
Fuggers
No body wanted big business when Anton fugger died
Market system
Each should do what was best for their monetary advantage
Fuedal system
Created towns & roads
People familiar with buying & selling
Money went merchants who knew about money from nobels who did not
Mississippi company
John Law sold shares of company that would mine gold in America
Hotel waiter will become rich
When structure collapsed, government tried to send beggars
Change from couple of people to mobs
Money hungry people
Birth of market system
