the rise of capitalism

Question 1

What’s the traditional understanding of capitalism?

Answer 1

Capitalism emerged in the 16th century in western europe, and fostered the rise of the west.

Question 2

Logic of circulation approach argues…

Answer 2

Capitalism is the production for the market predicated on an advanced division of labor within and btw centers of commercial production

Question 3

2 core elements of circulation approach

Answer 3

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

Question 4

Origins of capitalism according to circulation?

Answer 4

Fernand braudel (also long duree)
Mercantilism capitalism is the early stage of capitalism which then turns into industrial capitalism

Question 5

When was mercantile capitalism?

Answer 5

1500 to 1800

Question 6

Eurocentric critique by circulation approach

Answer 6

Trade routes were developed by non-europeans

Origins aren’t internal to Europe

Question 7

Which 3 processes did the circulation approach link

Answer 7

Rise of merchant capitalism
Development of powerful territorial states
Expansion of europe; colonialism

Question 8

Explain the 3 processes

Answer 8

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

Question 9

Explain the 3 processes

Answer 9

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

Question 10

What’s the first capitalist enterprise?

Answer 10

VOC

Question 11

Qualities of VOC

Answer 11

Limited liability (only losing what you invented)
You can trade your shares in the market

Question 12

What was the first stock exchange?

Answer 12

Amsterdam 1602

Question 13

How does the logic of circulation relate capitalism and slavery?

Answer 13

Shift from indian ocean to atlantic ocean = plantation economy
Triumph of EM capitalism = massive increase in unfree labor

Question 14

Logic of production approach argues…

Answer 14

Capitalism is a social system that’s based on property relations btw. producers and those selling their labor.

Question 15

What does free wage labor mean?

Answer 15

You are not tied to a land and the only thing you can offer is your labor

Question 16

2 core elements of production approach

Answer 16

1. Market is a compulsion - both capitalists and producers are subjected (there’s no choice)
2. You can make extra profits only by lowering the cost of production (economic means only)

Question 17

What’s the key claim of logic of production?

Answer 17

If the sphere of production isn’t reorganized, it’s not capitalism

Question 18

Why is it important to make the distinction between 1500 - 1800?

Answer 18

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

Question 19

How does logic of production name the pre1800 era?

Answer 19

non capitalist commerce

Question 20

Fragmented VS Integrated markets

Answer 20

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

Question 21

Which case study is a key disagreement among circulation and production scholars?

Answer 21

The dutch case

Question 22

Dutch case - logic of circulation

Answer 22

NL was the most advanced merchant capitalist economy; why did have to wait for England to become industrial?

Question 23

Dutch case - logic of production

Answer 23

NL wasn’t a capitalist state, so there isn’t any “fail”

Question 24

What was the enclosure system?

Answer 24

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

Question 25

Why does England owe the revolution to non-europeans? (3)

Answer 25

Necessary class relations in england was made possible by extra european factors

1. Pax mongolica: increase in trade; black death (class relations)
2. Ottoman’s attempt at empire building; curtailed Ottomans and states thrived in the north western corner.
3. New world colonialism and slavery; survival and development of capitalism