HIST 1020 Exam 3 Lecture Notes

Exam 3 Material

Commercial Revolution

• Definition: The Commercial Revolution was a significant surge in trade and commerce during the late Middle Ages and early Renaissance, marking a pivotal transition in economic practices across Europe.

• Stimulus: This period was profoundly influenced by voyages of exploration, such as those led by Christopher Columbus and Vasco da Gama, which opened up new trade routes and markets.

• Creation of Money Economy: There was a notable transition from barter systems to a money-based economy, which facilitated larger and more complex transactions.

• New Institutions: The emergence of banking systems and stock markets became essential components of the economic landscape, introducing new financial instruments such as bills of exchange and promissory notes.

World Economy

Price Revolution

• Overview: The Price Revolution refers to a period of sustained inflation experienced in various European regions, significantly impacting the economy.

• Drivers: The inflation was driven by several factors:

  • Population Growth: Population levels rose dramatically in the 16th Century, from approximately 80 million to 105 million, leading to increased demand for goods.

  • Influx of Precious Metals: The discovery of the New World led to an influx of precious metals, particularly silver and gold, which increased the money supply and contributed to inflation.

  • Stimulated Investment: The inflationary environment encouraged investments in trade and infrastructure, as individuals sought to capitalize on rising prices.

Dutch Republic

• Trading Nation: The Dutch Republic emerged as a premier trading nation in the 17th century, leading global commerce due to its advanced maritime fleet and trading networks.

• Amsterdam: This city became an essential trade center, effectively utilizing extensive warehouses to manage inventory and control prices in a competitive market.

Joint Stock Company

• Concept of Shares: The introduction of shares allowed a broader participation of investors and reduced risks for individuals, making investments more accessible.

• Stock Exchange: The establishment of the stock exchange in Amsterdam in 1602 marked a groundbreaking development in commercial activities, paving the way for modern financial markets.

• Government Regulation: Economic trade began to see significant government regulation, reflecting the importance of economic stability and growth.

Mercantilism

• Definition: Mercantilism was the dominant economic theory of the time, emphasizing state intervention in the economy to increase national wealth.

• Principles:

  • Belief that the total trade volume is fixed, leading nations to compete for a larger share.

  • Regulation of trade to encourage exports while discouraging imports to maintain a favorable balance of trade.

  • The pursuit of an imperial expansion that enriched monarchies through colonial exploitation.

• Colonial Impact: Colonies became essential sources for raw materials and served as markets for finished goods, reinforcing the mercantilist policies of European powers.

Banking Developments

• Banking Growth: The provision of loans and the charging of interest became standard practices, facilitating capital mobility and investment.

• Development of Bank Notes: The introduction of bank notes simplified transactions and increased trade efficiency, allowing for easier trade without the need for precious metal coins.

• Emergence of Wealthy Banking Families: The rise of influential banking families led to the establishment of private banks, which progressively evolved into governmental banks like the Bank of Amsterdam, founded in 1609.

Royal Absolutism in France

• Definition: Royal absolutism is characterized by a monarchy with total power, unrestrained by laws or constitutions.

• Development:

  • Henry IV (1589-1610): Introduced the Edict of Nantes, which granted religious tolerance to Huguenots, establishing domestic stability.

  • Louis XIII (1610-1643): Strengthened royal authority, guided by Cardinal Richelieu's policies aimed at reducing the power of nobles and consolidating the monarchy’s influence.

  • Louis XIV (1643-1715): Recognized as the epitome of absolute monarchy, famously declared, "I am the State," symbolizing his total control over the French government.

• Key Monarchs and Policies:

  • Henry IV: Notable for his public works and stabilizing policies.

  • Louis XIII: Increased centralization of power.

  • Cardinal Richelieu: Focused on strengthening the monarchy through reducing noble strength and centralizing authority.

  • Louis XIV: Constructed the Palace of Versailles as a grand symbol of royal authority and pursued mercantilist economic policies through Jean-Baptiste Colbert, who aimed to protect French industries and encourage economic growth.

  • Revoked the Edict of Nantes, which resulted in a mass exodus of Huguenots, leading to economic and cultural loss.

Wars and Expansion under Louis XIV

• Wars of Aggression: Louis XIV engaged in aggressive military campaigns aimed at territorial expansion and enhancing national prestige.

• Major Conflicts: Key wars included the War of Devolution, Dutch War, and the War of the League of Augsburg, which were largely driven by ambitions for territory and power.

• War of the Spanish Succession (1702-1713): A crucial conflict where Louis XIV attempted to unify the French and Spanish crowns, ending with a retention of the European balance of power and significant territorial adjustments.

Political Evolution in England

• Cabinet System: The emergence of a cabinet system where the monarchy increasingly relied on a council of advisors within Parliament to govern effectively.

• Political Groups:

  • Whigs: Supported commerce and a strong Parliament.

  • Tories: Advocated for royal authority and traditional governance.

• Queen Anne: The last Stuart monarch, her reign saw the Acts of Union in 1707, which unified England and Scotland, altering the political landscape significantly.

The Rise of Prussia

• King Frederick William I: Known for significantly expanding the Prussian army and emphasizing military obedience.

• Frederick II (The Great): Undertook enlightened reforms, expanded Prussia’s territories, and promoted efficiency in governance and military engagement.

Habsburg Monarchy and Conflicts

• Maria Theresa: The first female ruler of Austria, who modernized the army and faced the challenges of the War of the Austrian Succession.

• Seven Years' War: A global conflict influenced by territorial disputes, resulting in substantial geopolitical shifts, particularly the rise of British dominance on the world stage.

Scientific Revolution and Enlightenment

• Scientific Revolution (1500-1700): This era fostered exploration of natural laws through reasoning and observation, laying the groundwork for modern science.

• Enlightenment (1670-1800): A movement emphasizing the application of reason to human nature and governance, prompting significant social and political changes.

• Major Thinkers:

  • Thomas Hobbes: Advocated the necessity of a social contract and the need for a strong monarchy to prevent societal collapse.

  • John Locke: Argued for natural rights (life, liberty, and property) and the importance of a limited governmental authority.

  • Montesquieu: Critiqued absolute power and analyzed various forms of government, proposing the separation of powers.

  • Voltaire: Critically addressed issues of government and religious intolerance, influencing revolutionary ideas across Europe.