Lecture 4: 1500-1750 Flashcards
What made up the European Economy between 1500-1750?
Land: limited land, Growth of mining/metal production, access to new land on other continents,
Labour: Population growth, overseas migration, gradual improvement in human capital
Capital: large increase in all kinds, inflow from overseas
Technology: increased efficiency in agriculture, gradual technological improvements, growth of finance and business, scientific revolution
Institutions: Growth of the market economy but regulated nationalistic structure (mercantilism)
Explaining the great divergence (between Europe and China)
7 Arguments
Europe had:
1. worse land
2. available coal
3. stagnant human capital
4. faster expanding trade
5. Lower capital rents
6. Scientific revolution
7. competition between states
What was transported in the Atlantic triangular trade?
Europe → (Manufactures) → Africa → (Slaves) → North America → Raw Materials → Europe
Two Americas in the interwar period?
Land: Enormously rich resources, New goods/foodstuffs exported
Labour: Destruction of native population, Migration and Slaves, heterogenous human capital
Capital: Huge differences in access to capital
Technology: Imported
Institutions: European institutions imported - North more “market” based, south more “feudal”
Why were econs in Eurasia more dynamic than in Americas and Sub-Sah. Africa? (Sarahs 5)
Land: relatively better opportunities for agriculture, more metals, easy communication
Labour: Larger total population
Capital: Largest access to fixed and circulating capital
Technology: Land advantage/flow of ideas → innovations (ships, wheels, textile), devision of Labour
Institutions: Developed systems of redistribution and trade, codified rule, private property
Why did European countries suddenly support commerce?
Income through tolls and taxes (to protect state legitimacy)
Competition with other (European) states,
awareness of support to domestic production,
Trade makes luxury consume (of the elite) possible/cheaper
