European Overseas Expansion
and the Commercial Revolution

á What
combination of factors contributed to European expansion in the 16th
century?
á What were the
consequences for the Native Americans?
How were they to be treated? What were the consequences for Europeans?
á What conditions made the Òcommercial revolutionÓ and the
rise of early mercantile capitalism possible in the between 1550 and 1750
centuries?
Key Terms
1) Politics of
History/Culture Wars 6) Putting Out System
2) Juan de Sepulveda 7) Jean Colbert
3) Bartolomew de Las Casas 8) joint-stock company
4) ÒPrice RevolutionÓ/Great Inflation
5) Enclosure
I. The Motives and Means of
Expansion: Why Europe?
á
Motives:
¤ Economics: Land, Trade,
and Birth of Capitalism
¤ Politics: Centralizing
Monarchies, International Competition
¤ Religion: Messianic
Impulses and Crusader Mentality
¤ Individualism: The New
Adventurer? Lack of Opportunity?
á
Means:
¤ Technology: Ships,
Navigation, and Guns
¤ Financial Support:
Monarchies and Investors
á
The Native Americans:
¤ Population Decline, Slavery, and Christianity
¤ Introduction of Slavery
from Africa
II.
How to Rule over non-Europeans?
á
Brutality or Benevolent Paternalism?
á
Do the Native Americans have souls?
á
Charles V and the Council of the Indies
á
Opposing Views: Juan de Sepulveda vs. Bartolomew
de Las Cases (1550)
III. The
Commercial Revolution and the Origins of Capitalism
Preconditions
á
Trade, Imperial Expansion, Population
Growth
á
The ÒPrice
RevolutionÓ and Inflation (and the Problem
of Deflation)
The Role of the Entrepreneur and Private Interest
á
The New Merchant Class vs. the Guilds
á
Proto-industrialization: The ÒDomesticÓ
or ÒPutting OutÓ
System
á
New Banking and Joint-Stock
Companies: The East India
Company (1600)
á
Advantages in New Markets: Internal and External
á
A New Economic Culture and Identity
The Role of the State and Public Interest
á
Centralizing States as Consumers
á
Law, Order, Stability, and
Infrastructure
á
State Intervention: Favorable Trade
Balance and Economic Regulation
á
Jean
Baptiste Colbert (1619-1683): The ÒParadoxÓ of Mercantilism
á
Mercantilism Today: The Rise of
China (NYT,
WSJ,
WP)