18th Century Social and Economic Change

The Dawn of the Agricultural and Industrial Revolutions.

Economic and demographic changes

1700, 80% of western Europeans were farmers; higher % in eastern Europe

Most people lived in poverty.Significant population growth until 1650;

slows down until 1750 when it starts to dramatically rise again.

Population Explosion after 1750

Limits to population growth before 1700: - famine, disease, war

Reasons for population growth: disappearance of plague improved sanitation, improved transportation for food

distribution (canal and road building in western Europe),

increased food supply (esp. potato).

Falling Death RatesWith the exception of England, birth

rates did not significantly rise, but death rates fell.

A better nourished population (due to better weather, better agricultural practices, and better transport) led to people living longer.

Impact of Profit Inflation Inflation due to rising population and increased

demand. “Profit inflation” stimulated economic growth. By the end of the 18th century, prices outperform

wages, leading to hardship for the poor, particularly in France.

Wealth moved more and more from the poor to the wealthy due to high rents and low wages

Regressive tax structure that put the burden on the poor in France and much of the continent caused hardship and led to financial crises.

Protoindustrialization Cottage Industries: first and

foremost a family enterprise (also called “putting-out” system)

- Occurred during Agricultural Revolution

Putting-out system: city manufacturers took advantage of cheaper labor in the countryside increased rural population eager to

supplement agricultural income. began to challenge urban craft

industry

The European Linen Industry

Economic InnovationChanges in Structure and Performance:

Performance – measured by output; generally identified through per capita productivity.

Structure – characteristics that support performance (laws, tax policies, technology, population, etc.)

Adam Smith Smith criticized both guild and

mercantile-based economic systems as restraining.

Promoted liaise-faire (i.e. classical liberalism) ideology in The Wealth of Nations (1776).

Free market economy based on division of labor and the fewest government restrictions as possible

Why Britain? Large supplies of coal and iron. Navigable waterways and access to the sea.

Expansion of roads (macadam in Britain, corvee in France).

Merchants had surplus capital from commercial revolution for investment.

Gov’t policies favorable to merchants (property rights, taxes, banking system)

Cultural innovation (dissenters) and free market ideas.

High standard of living; growing population driving demand.

CottonDemand for cheap cotton goods at

home and abroad made textiles the first to industrialize.

Cotton was cheap (slave labor) and durable.

“Putting-out” system could not keep up with demand (lack of organization, distance between workers); this required new system

Factory SystemThe organization of labor in one location

allowed for increased production.The location of factories near rivers

and/or seaports allowed for the transportation of goods to be easier and provided power supplies.

Location in urban areas provided cheap labor supply.

Introduction of machines increased per capita production.

Inventions 1733, John Kay: flying shuttle 1764, James Hargreaves:

spinning jenny 1769, Richard Arkwright:

water frame, which improved thread spinning.

1780s, Edmund Cartwright: steam engine to power looms; factory production of textiles.

1793, Eli Whitney, cotton gin

The Steam Engine1700 – Thomas Savery invents steam

pump.1712 – Thomas Newcomen built steam

engine to pump water from mines.1769 – James Watt creates more

efficient steam engine.By 1800, steam power was being used

to power looms in factories across Britain.

Before the Agricultural Revolutionopen-field system: greatest

accomplishment of Medieval agriculturevillage agriculture; 1/3 to ½ of fields lay

fallow.Common land: used by village for

livestock – fields shared by peasants.serfs in eastern Europe were worst off;

many sold with lands (like slavery)

The Agricultural Revolution

Agricultural Revolution: major milestone in human civilization

impact of the scientific revolution’s experimental method was great

Application of scientific ideas - crop rotation most important feature.

Enclosure Movementend to common lands and open-field

systemagriculturalists (land owners)

consolidated lands and closed them offgame laws in England prohibited

peasants from hunting gamecaused considerable friction in the

countryside in 17th and 18th centuries

Impact of Enclosure traditional view of enclosure (Marx): poor

people driven off the land recent scholarship: negative impact of

enclosure may have been exaggeratedAs much as 50% of lands enclosed already

by 1750 (much by mutual consent)1700: ratio of landless farmer to landowner

= 2:1; not much greater in 1800

Low CountriesNetherlands and Belgium (Austrian

Netherlands) took the lead in agricultural innovations

Increased population meant more food had to be produced

Cornelius Vermuyden: important in drainage of swamp lands into useful farm land.

Huge impact on southern England.

EnglandViscount Charles Townsend (1674-1738):

improved soil by crop rotation (turnips)Bog and marshes drained extensively,

manured heavily, regular crop rotation w/o fallowing

Jethro Tull (1674-1741): seed drill; more efficient than scattering seeds by hand

Robert Bakewell (1720-1795) selective breeding of ordinary livestock (animal husbandry): created larger animals.

Atlantic Economy in the 17th and 18th Centuries Characteristics

World trade became fundamental Spain and Portugal revitalized their empires and

began drawing more wealth from renewed development.

Netherlands, Great Britain, and France benefited most; Great Britain the leading maritime power.

Britain’s commercial leadership based on mercantilism

Navigation Laws: aimed to reduce Dutch trade in Atlantic region (1st in 1651, Cromwell)

Atlantic Slave Trade Basis of the

Triangular Trade System.

Nearly 10 million transported.

Millions more died in the ordeal.

In the 1780s, European participation died off, but it was not outlawed by Britain until 1807.

South Sea Bubble South Sea Bubble: responsible for exploiting the

asiento other commercial privileges won from Spain after Treaty of Utrecht (1713)

Took over large portion of public debt by receiving gov’t bonds in return for shares of its stock.

Stock values soared but the “bubble” burst in 1720 England recovered better than France who had

created a Mississippi Bubble for New Orleans commerce.

“Bubble Act”: forbade joint-stock companies, except those chartered by gov’t

3 Anglo-Dutch wars (1652-74)

hurt Dutch shipping and commerce

Netherlands’ “golden age”: during 1st half of 17th century, now in decline

Colonial Wars: Britain v. FranceWar of Spanish Succession (Queen

Anne’s War) (1701-1713)Treaty of Utrecht (1713):

Britain received asiento (slave trade) from Spain

Britain allowed to send 1 ship of merchandise annually into Panama

Britain received control of Nova Scotia, Newfoundland and

Colonial Wars: Britain v. France

War of Jenkins’ Ear (1739): started over Spanish anger over British abuse of asiento.

Expanded into War of Austrian Succession the following year

War of Austrian Succession (King George’s War) (1740-1748)

Treaty of Aix-la-Chapelle (1748): restored status quo prior to war

Colonial Wars: Britain v. France Seven Years War (French and

Indian War, The Great War for Empire) (1754-1763) Continental War primary between Prussia and Austria.

Global war in North America, Caribbean and India.

William Pitt the Elder: successfully led war effort from Parliament for UK; British naval superiority won the day.

Flag of Maryland Militia under G. Washington, defeated at Ft. Duquesne

Colonial Wars: Britain v. France Robert Clive defeats French backers in India

at the Battle of Plassey (June 1557) General Wolfe defeated Montcalm on the

Plains of Abraham (Battle of Quebec) in Sept. 1759.

Treaty of Paris (1763): Britain gained all French territory in North America

(Canada and the US Midwest) Spain gained New Orleans and Louisiana. Removed French from significant position in India.

British in IndiaTook advantage of the

teetering Mughal Empire.The British East India

Company grew in power; ruled Bengal.

India Act of 1784 placed India under control of British gov’t

The British Raj transformed India into the “Jewel of the British Crown” in the 19th century.

Spanish Colonies Spain’s Latin American colonies: helped

revitalize Spanish empire in 18th c. gold and silver mining recovered significant trade with mother country

Creoles elite came to rival top Spanish authorities (about 10% of population)

Mestizos increased to about 20% of population black slavery in Cuba and Puerto Rico

Portuguese ColoniesPortuguese Brazil: about 50% of

population African by early 19th c.more successful in blending races than

in Spanish colonies or United StatesSlavery remained in place until the end

of the 19th century.