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Wealth Measurement in the 17th Century
Gold and Silver: Wealth of a country was measured by the amount of gold and silver in its coffers.
Economic Strategies:
Export Maximization: Countries aimed to sell as many goods as possible to obtain gold and silver.
Import Minimization: Countries avoided spending precious metals on foreign goods.
Accumulation of Capital
Role of Entrepreneurs: Entered long-distance markets, shifting capital to laborers, who then became consumers and investors.
Church Restrictions: Despite these, lending money at high interest rates became common.
Western Hemisphere Wealth: Increased actual wealth with the influx of gold and silver.
Commercial Revolution
Definition: Transition to a trade-based economy using gold and silver.
Causes:
Development of European overseas colonies.
Opening of new ocean trade routes.
Population growth.
Inflation from increased gold and silver circulation, known as the Price Revolution.
Joint-Stock Companies:
Formation: Investors bought shares, shared profits and risks, and benefited from limited liability.
Driving Force: Enabled exploration and colonization with reduced risk to investors.
Commerce and Finance
Dutch Dominance:
Trade Routes: Set up routes to Latin America, North America, South Africa, and Indonesia.
Ship Technology: Faster and lighter ships gave the Dutch a trade advantage.
Financial Pioneers: Early stock exchange (1602) and international currency trade (1609).
Economic Impact: Dutch standard of living was the highest in Europe.
Financial Bubbles:
France and England: Speculative schemes led to economic crises, bankruptcies, and widespread damage.
Triangular Trade
Structure:
Segments: European goods to Africa, enslaved Africans to the Americas, American goods to Europe.
Goods Traded: Sugar was the most profitable; rum and tobacco also significant.
Economic Impact: Financed fortunes in Britain, France, and the Netherlands.
Rivalries for Indian Ocean Trade
Portuguese Victory (1509): Defeated Muslim and Venetian forces in the Arabian Sea.
Moroccan Conquest (1598): Defeated Songhai Kingdom despite prohibitions against waging war on Muslim states.
Economic Aftermath: Depleted Moroccan coffers and shifted regional power dynamics.
Change and Continuities in Trade Networks
Global Circulation of Goods: Silver from the Americas fueled Asian markets; European demand for Asian goods increased.
Monopolies:
Chartered by Rulers: Exclusive trading rights granted to merchants or joint-stock companies.
Spanish Tobacco Monopoly: Profits from tobacco enriched the Spanish government significantly.
Regional Markets: Continued to thrive, facilitated by improved shipping and increased output of goods like wool, linen, cotton, and silk.
Effects of the Atlantic Slave Trade
African Societies:
Population Decline: Loss of people slowed population growth and led to economic dependence on European goods.
Political Impact: Societies like Dahomey and Oyo became richer from the trade, increasing intergroup warfare.
Gender Imbalance: Predominance of women led to polygyny and shifts in traditional gender roles.
Introduction of New Foods: Crops like maize, peanuts, and manioc improved diets and spurred population growth.
Political and Cultural Changes for Indigenous Peoples
Colonial Administration:
Spanish and Portuguese Rule: Replaced indigenous political structures with colonial administrations.
Viceroys and Audiencias: Administered and monitored Spanish colonies, but slow communication hindered direct control.
Cultural Changes:
Loss of Indigenous Culture: Conquistadors destroyed native books and documents, erasing cultural history.
Language and Religion: Spanish and Portuguese languages and Christianity became predominant in Latin America.
Creole Dominance: By 1750, American-born Spaniards (creoles) began seeking independence.
Effects on Belief Systems
Syncretic Belief Systems in the Americas:
African Religions: Blended with Christianity, resulting in syncretic practices like Santería, Vodun, and Candomblé.
Islam in the Americas: Enslaved Africans introduced Islam.
Catholic Missionaries: Successful in converting Latin Americans, resulting in a predominantly Roman Catholic population.
Global Interactions and Religious Conflicts:
Sufism and Sikhism: Sufism influenced Sikhism; both sought personal salvation.
Religious Conflicts: Sunni-Shi'a split fueled Ottoman-Safavid conflicts; Protestant-Catholic divide influenced European colonization.
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