Elizabeth I and Economic Development Flashcards
Transatlantic Trade
Exploring the New World was contentious because Spain and Portugal claimed it. In 1562 and 1564, John Hawkins made large profits from the Triangular Trade. Drake conducted raids against Spanish ships and colonies in the New World. He brought back huge sums in 1572-3 and after his circumnavigation 1577-80.
Angering Spain
Elizabeth hoped English privateers could distract Spain as well as disrupt its flow of silver and resources from America. Instead, they angered him. Spain attacked John Hawkins’ fleet in 1568 for trying to break Spain’s monopoly in the trans-Atlantic slave trade.
Rivalry and Relevance of Antwerp
In 1550, most of England’s trade was exporting wool to Antwerp (which was a port controlled by Spain). As relations with Spain got worse, trading through Antwerp became harder. This encouraged exploration and the discovery of new trade routes.
Trading Companies
The East India Company was created in 1600 and it had a monopoly to trade with Asia. Trade with Asia was helped when James Lancaster discovered a route to Asia around the Cape of Good Hope (South Africa) to Asia. The Spanish company was created and had a monopoly on trade with Spanish colonies. The Muscovy Company helped break the monopoly of the Hanseatic League in the Baltic.
Sir Francis Drake
Between 1577-1580, Drake became the first person to circumnavigate the globe. This included raiding Spanish ports in the Americas, and losing several ships from his fleet in storms around the globe. For example, he captured £40,000 of Spanish treasure in Panama. He was knighted on his return. The wealth from Drake’s travels and his knighthood encouraged more British sailors. Elizabeth I also took a large chunk of the treasure that Drake brought home from his journey.
Sir Walter Raleigh
In 1584, Elizabeth I gave Sir Walter Raleigh permission to colonise (seize control of) any part of the Americas not ruled by Christians.
In fact, he sent others to try to establish the colonies there (like New Albion in California). Humphrey Gilbert tried to create a colony in Newfoundland, Canada, but he failed. But the colonies established on the east coast of America in the 1580s did not last.
Sir John Hawkins
In 1562 and 1564, Hawkins made profits from the Triangular Trade for figures such as Cecil, Leicester and Elizabeth I. In 1568, his ships were attacked by the Spanish in Mexico. This was in response to him trying to break Spain’s monopoly in the trans-Atlantic slave trade.
The Lost Colony
In 1585, Raleigh set up a colony on Roanoke Island, Virginia. But most of the 108 settlers returned to England in 1586. By 1590, there was nobody in the colony. Roanoke Island was then called the Lost Colony. There were not enough supplies and Roanoke did not have good land for farming.
Inflation
On average, the price of goods increased by 400%. This was caused by a number of factors:
> The rise in the population, which meant goods were more in demand.
> Increased government spending, which put more money in circulation.
> The debasement of coinage in the 1540s, which meant the purchasing power of money decreased.
Urban Growth
There was a period of stability in towns in Elizabeth’s reign until the return of high taxation and bad harvests led to social unrest in the 1590s. London grew faster than anywhere else. New urban centres began in some places (e.g. Manchester, Plymouth). Some towns declined (e.g. Winchester). New urban centres grew because of manufacturing, although it was still small-scale. Examples of cottage industry: soap, nails, hosiery.
House building and entertainment did well in many towns.
Impact of Urban Growth
Employers, merchants and professionals became wealthier. Ordinary workers and labourers saw real wages fall and living standards decline.
Rural Landowners
The rising price of food benefitted landowners. They could afford enclosure and new techniques helping drainage and animal breeding. Enclosure was actually limited but caused great upset where it happened. There was a spate of enclosures in some areas 1591-7. Parliament passed two Acts in 1598 to restrict enclosure and prevent more land being taken away from crops and given over the animals.
Rural Tenants
People renting land faced increased rents when leases expired. Traditionally, leases were long-term. But as rents rose, they became shorter-term. Farm labourers suffered from falling wages and rising prices. Their standard of living fell. When times were very bad (e.g. 1594-7) many migrated to towns.
