Renaissance Economics. The Age of Discovery
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1 Renaissance Economics The Age of Discovery
2 Commercial Revolution Price Revolution Rising populations demanded more goods = higher prices New sources of gold & silver stimulate inflation Inflation stimulated production (make more money, invest in more goods) Towns grow begins the shift from rural to more urban societies Enclosure movements (England) to increase sheep herding & wool production Begins cottage (domestic) system as a source of income Bourgeoisie grows in power Increased standard of living = greater varieties of foods, spices & tools especially among upper & middle classes
3 Commercial Revolution New Types of Businesses Banking = financed monarchies and capitalist enterprises Fuggers (Germany) & Medici (Italy) become extremely powerful Joint Stock Companies = investors pool resources for a common purpose Emergence of stock market (Bourse in Antwerp) Early examples of successful capitalism Cloth production; Mining; Printing; Book Trade; Shipbuilding; Weaponry (cannon) Chartered Companies = state provided monopolies British East India Co.; Dutch East India Co. Included ships & military power Sugar**; Rice; Tea
4 Commercial Revolution Mercantilism = Creation of self-sufficient economy where a nation exports more than it imports Bullionism = A country should acquire as much gold & silver as possible Mercantilism helps support bullionism Rise of nation-states resulted in competition for empires and trade
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6 Motives for Exploration God, Glory and Gold Crusades = created interest in Asia & the Middle East Renaissance = search for knowledge Revival of ancient texts Mathematics very popular Books = spread of accurate texts & maps Commercial Revolution = capitalist investments in overseas exploration New Technology
7 Better Maps [Portulan] Hartman Astrolabe (1532) Determines latitude by measuring altitude of celestial bodies Mariner s Compass Pointed to magnetic north = easier to determine direction Sextant Determines latitude by measuring altitude of celestial bodies
8 Innovations in Ship Design Portuguese Caravel (1450) Lighter, faster ships that could sail into the wind Lateen Sail = new rigging & style that enabled sails to be more maneuverable Axial Rudder (side rudder) = improved change of direction Gunpowder & cannon = provided protection and facilitated domination of native peoples
9 Prince Henry the Navigator Financed numerous expeditions along Africa s West Coast Mercenary = looking for gold & riches Religious = save the souls of Muslims & pagans
10 Portugal Bartholomew Dias = Rounds Cape of Good Hope (1487) Vasco da Gama Reaches India (1498) Brings back enough goods to finance expedition multiple times Breaks Italian monopoly on trade with Asia Old Imperialism = establishing ports & forts on coastal regions Focus on trade & missionary work NOT conquest Alphonso d Albuquerque = coastal regions used as a base to control Indian Ocean
11 Spain Christopher Columbus = financed by Spain in an attempt to compete with Portugal Searching for a western route to India Reached the Bahamas (1492) believing them to be the Indies 4 Expeditions charted most of the Caribbean Bartholomew de las Casas = Black Legend Critical of Columbus treatment of the indigenous peoples Used by Protestants to criticize the Catholic missions (& Catholic Spain in general)
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13 American Exploration Amerigo Vespucci (Portugal) Might be the first explorer to realize he was on a new continent Brazil = Portugal s major colony in the New World Vasco Nunez de Balboa (Spain) = crossed Panama to find the Pacific Ocean Ferdinand Magellan (Spain) = charted the Pacific Ocean Magellan killed in the Philippines but his ships are first to circumnavigate the globe
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15 American Exploration Treaty of Tordesillas (1494) New World divided between Spain & Portugal North-South line drawn through the Atlantic West = Spain East = Portugal Portugal maintains Brazil and control of African slave trade Spain protects Columbus discoveries
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18 American Conquests New Imperialism = conquering & subjugating entire regions Mercantilist = colonies exist for the benefit of the mother country Mining = Crown got 20% of all precious metals Agriculture = produce food & goods for mines Encomienda = formal grants allowing forced servitude of natives Replaced by Repartimiento = natives commit a certain number of days to Spanish (still brutal labor resulting in many deaths)
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20 American Conquests: Slavery Portugal introduces slavery in Brazil to farm sugar plantations Dutch West India Co. (1621) England s Royal African Co. Late 17 th Century Caribbean & N. America By 1800 blacks = 60% of Brazil s population; 20% of US population Est. 50 Million Africans died or became slaves in the 17 th & 18 th Centuries
21 Columbian Exchange From New World to Europe From Europe to New World Diseases: syphilis Plants: potato; corn; tomato; pineapple; tobacco; vanilla, beans; chocolate Began a food revolution in Europe Potato became the new staple crop of Europe Animals: turkey Gold & Silver Diseases: small pox; measles; bubonic plague; influenza; typhus 90% of American population perished Plants: wheat; sugar; rice; coffee Animals: horses; cows; pigs; sheep; goats; chickens Some natives embraced horses New sources of protein
22 American Conquest: New Rivals Dutch Republic Began to challenge Spain in the New World Controlled slave trade by France England Jacques Cartier = Search for Northwest Passage Quebec (1608) = first settlement John Cabot = explored northeast coast but didn t find any gold or silver Jamestown (1607) = first permanent settlement More English settlers than any other nationality
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