the rise of capitalism Flashcards
What’s the traditional understanding of capitalism?
Capitalism emerged in the 16th century in western europe, and fostered the rise of the west.
Logic of circulation approach argues…
Capitalism is the production for the market predicated on an advanced division of labor within and btw centers of commercial production
2 core elements of circulation approach
Exploitation of regional price differentials
Using extra economic means like control of trade routes, tax farmers etc. - about political and military means of increasing production
Origins of capitalism according to circulation?
Fernand braudel (also long duree) Mercantilism capitalism is the early stage of capitalism which then turns into industrial capitalism
When was mercantile capitalism?
1500 to 1800
Eurocentric critique by circulation approach
Trade routes were developed by non-europeans
Origins aren’t internal to Europe
Which 3 processes did the circulation approach link
Rise of merchant capitalism
Development of powerful territorial states
Expansion of europe; colonialism
Explain the 3 processes
Merchant capitalism fueled colonialism Merchant capitalism + colonialism = voc and eic Finance capitalism = stock exchanges Rise of banks = states borrow money States borrow money = more funds for war
Explain the 3 processes
Merchant capitalism fueled colonialism Merchant capitalism + colonialism = voc and eic Finance capitalism = stock exchanges Rise of banks = states borrow money States borrow money = more funds for war
What’s the first capitalist enterprise?
VOC
Qualities of VOC
Limited liability (only losing what you invented) You can trade your shares in the market
What was the first stock exchange?
Amsterdam 1602
How does the logic of circulation relate capitalism and slavery?
Shift from indian ocean to atlantic ocean = plantation economy
Triumph of EM capitalism = massive increase in unfree labor
Logic of production approach argues…
Capitalism is a social system that’s based on property relations btw. producers and those selling their labor.
What does free wage labor mean?
You are not tied to a land and the only thing you can offer is your labor
2 core elements of production approach
- Market is a compulsion - both capitalists and producers are subjected (there’s no choice)
- You can make extra profits only by lowering the cost of production (economic means only)
What’s the key claim of logic of production?
If the sphere of production isn’t reorganized, it’s not capitalism
Why is it important to make the distinction between 1500 - 1800?
Because if capitalism is commerce, it’s inevitable but logic of production scholars who are generally capitalists don’t wanna argue this.
Capitalism is super recent - change is possible
How does logic of production name the pre1800 era?
non capitalist commerce
Fragmented VS Integrated markets
Fragmented means - one thing available in africa, another available in america
Integrated means - everything is already together - only way to lower price is to lower cost of production
Capitalism thrives in fragmented markets
Which case study is a key disagreement among circulation and production scholars?
The dutch case
Dutch case - logic of circulation
NL was the most advanced merchant capitalist economy; why did have to wait for England to become industrial?
Dutch case - logic of production
NL wasn’t a capitalist state, so there isn’t any “fail”
What was the enclosure system?
Reorganization of english agriculture
Turn towards making the peasants property - they are dispossessed of the lands they use
So they are forced to sell their labor
Land owners are competing against each other (market comes integrated - more competition)
They can make the land efficient or make wages less
This process provides huge, cheap workforce for factories that multiplied during the ir
Why does England owe the revolution to non-europeans? (3)
Necessary class relations in england was made possible by extra european factors
- Pax mongolica: increase in trade; black death (class relations)
- Ottoman’s attempt at empire building; curtailed Ottomans and states thrived in the north western corner.
- New world colonialism and slavery; survival and development of capitalism
