Economic History Lecture

1. Medieval Europe (8-16Medieval Europe (8-16thth
c.)c.)
 Context:Context:
 Growing tax burden as Rome declinesGrowing tax burden as Rome declines
 No central authority resulting in anarchyNo central authority resulting in anarchy
 Large self-sufficient estatesLarge self-sufficient estates
 Decline of towns & interregional tradeDecline of towns & interregional trade
 Roaming barbarians & petty kingdomsRoaming barbarians & petty kingdoms

2. The Frankish KingdomThe Frankish Kingdom
 Largest of manyLargest of many
 No regular system of taxationNo regular system of taxation
 Dependence on loyalty of noblesDependence on loyalty of nobles
 Invaders:Invaders:
 Muslims take Spain (700s)Muslims take Spain (700s)
 Vikings dominate North Sea (800s)Vikings dominate North Sea (800s)
 Security at premium => feudalismSecurity at premium => feudalism

3. Feudal societyFeudal society
 System of military-political relationshipsSystem of military-political relationships
 Stirrup (central Asia) makes infantry almost obsoleteStirrup (central Asia) makes infantry almost obsolete
(except combined with fortifications)(except combined with fortifications)
 No source of public funds (centralized taxation)No source of public funds (centralized taxation)
 Security services in exchange for Church landsSecurity services in exchange for Church lands
 Lords fight, clergy pray, peasants workLords fight, clergy pray, peasants work
 Power shift: Regular clergy => secular clergyPower shift: Regular clergy => secular clergy
 Serfs bound to the soil not the lordSerfs bound to the soil not the lord
 Servile duties & restrictions => wages & exploitationServile duties & restrictions => wages & exploitation

4. ManorialismManorialism
 Economic system underlying feudalismEconomic system underlying feudalism
 Evolved from late Roman farming modelEvolved from late Roman farming model
 Open fields: scattered strips & common laborOpen fields: scattered strips & common labor
 Lords demesneLords demesne
 Labor (field, spinning & weaving, child-servants)Labor (field, spinning & weaving, child-servants)
 Dues (50%+)Dues (50%+)
 Fees for use of capital (mill, oven, etc.)Fees for use of capital (mill, oven, etc.)
 Tithe to the churchTithe to the church
 Royal taxation (sporadic)Royal taxation (sporadic)

5. ManorialismManorialism
 Innovations:Innovations:
 Three-course crop rotationThree-course crop rotation
 Heavy wheeled plow (with iron tip)Heavy wheeled plow (with iron tip)
 Improved iron tools (hoes, pitchforks, & axes)Improved iron tools (hoes, pitchforks, & axes)
 Manure & other soil improvementsManure & other soil improvements
 New crops:New crops:
 rye, oatsrye, oats
 Grafting from Muslims:Grafting from Muslims:
 Rice, cotton, sugar-cane, citrus fruitRice, cotton, sugar-cane, citrus fruit

6. Medieval technological innovationMedieval technological innovation
 Incentives have changedIncentives have changed
 Higher productivity improves peasants’ welfareHigher productivity improves peasants’ welfare
unlike slaves (even with rapacious exploitation)unlike slaves (even with rapacious exploitation)
 Common workCommon work
 individual or group innovation (?)individual or group innovation (?)
 Benefits sharedBenefits shared
 Nascent urbanization increases specialization &Nascent urbanization increases specialization &
trade & thus, innovationtrade & thus, innovation
 Industries: cloth & to lesser extent buildingIndustries: cloth & to lesser extent building

7. Demographic Expansion & migrationDemographic Expansion & migration
 Communes in Northern Italy (Milan)Communes in Northern Italy (Milan)
 Slow to develop in the north except:Slow to develop in the north except:
 Low Countries, Northern France, CataloniaLow Countries, Northern France, Catalonia
 Rudimentary economic planning:Rudimentary economic planning:
 Locators; real-estate developersLocators; real-estate developers
 Recruit colonists according to regional similaritiesRecruit colonists according to regional similarities
 Incentives:Incentives:
 Lower & deferred rent burdenLower & deferred rent burden
 Greater independenceGreater independence
 Increased resource flow into EuropeIncreased resource flow into Europe

8. Commercial RevolutionCommercial Revolution
 Reduces northern dependency on ItalianReduces northern dependency on Italian
trade with Muslimstrade with Muslims
 Hansa:Hansa:
 Northern cities form trade blockNorthern cities form trade block
 ““German Foundations”German Foundations”
 German cities in foreign lands (Riga, Danzig)German cities in foreign lands (Riga, Danzig)
 Trade Fairs (Champaign, Geneva)Trade Fairs (Champaign, Geneva)
 Alpine passes (before S-N sea route develops)Alpine passes (before S-N sea route develops)
 Banking & credit (important with coinage chaos)Banking & credit (important with coinage chaos)
 Partnerships, &Partnerships, & vera societàvera società

9. Clocks, the Mind, and the UniverseClocks, the Mind, and the Universe
 Medieval “high-tech:”Medieval “high-tech:”
 Wind- & Watermills use complicated gearingWind- & Watermills use complicated gearing
 Practical mechanics by empirical knowledgePractical mechanics by empirical knowledge
 1414thth
c. Cities have elaborate mechanical clocksc. Cities have elaborate mechanical clocks
 Giovanni de’DondiGiovanni de’Dondi
 Clock tracks sun, moon, & 5 known planetsClock tracks sun, moon, & 5 known planets
 200 before the Copernican revolution200 before the Copernican revolution
 Clocks transforms our awareness of timeClocks transforms our awareness of time
 Social institutions regulated by timeSocial institutions regulated by time
 Nicole Oresme: “the supreme clockmaker”Nicole Oresme: “the supreme clockmaker”
 Roger Bacon (13Roger Bacon (13thth
c. Oxford):c. Oxford):
“… carts without animals … machines for flying …”“… carts without animals … machines for flying …”

10. Crisis (late 14-15Crisis (late 14-15thth
c.)c.)
 Crop failures:Crop failures:
 ““Little” ice-ageLittle” ice-age
 Lack of new landLack of new land
 less livestock => less protein => less manureless livestock => less protein => less manure
 Deforestation => soil degradationDeforestation => soil degradation
 1348: Bubonic plague (Black Death)1348: Bubonic plague (Black Death)
 1/3 population reduction (+ city-sanitation)1/3 population reduction (+ city-sanitation)
 Becomes endemic (10-15 year cycles)Becomes endemic (10-15 year cycles)
 Wars:Wars:
 Hundred Years War (1338-1453)Hundred Years War (1338-1453)
 Ottomans conquer Byzantine EmpireOttomans conquer Byzantine Empire

11. Crisis (late 14-15Crisis (late 14-15thth
c.)c.)
 Previous population & urbanization => DPrevious population & urbanization => D↑↑
=> prices=> prices↑↑ => wages=> wages↓↓ (real even more)(real even more)
 Lords attempt to tighten manorialismLords attempt to tighten manorialism
 Western Europe:Western Europe:
 Limited successLimited success
 Plague => urban populationPlague => urban population↓↓ => P=> P↓↓ => wages=> wages↑↑
 Wage controls => massive revoltsWage controls => massive revolts
 Cost & riskCost & risk↑↑ =>=>
Strong guilds, holding companies (Medici), labor-savingStrong guilds, holding companies (Medici), labor-saving
tech.tech.
 Eastern Europe:Eastern Europe:
 Completely successful in a sparsely populated east)Completely successful in a sparsely populated east)
 Plague => elimination of cities & markets => subsistencePlague => elimination of cities & markets => subsistence
 Desperation => Strong feudalism until the late 19Desperation => Strong feudalism until the late 19thth
c.c.

12. Europe’s Second Logistic (16 c.)Europe’s Second Logistic (16 c.)
 Trade, conquest, and settlementTrade, conquest, and settlement
 Rise in supply of actual & potential resourcesRise in supply of actual & potential resources
 Rise in government's role in the economyRise in government's role in the economy
 Spain & PortugalSpain & Portugal
 Price Revolution: MsPrice Revolution: Ms↑↑ => P=> P↑↑ (x3-4)(x3-4)
 Real wages decline severelyReal wages decline severely
 North SeaNorth Sea
 Low Countries (Dutch Republic separates fromLow Countries (Dutch Republic separates from
Spain)Spain)
 England (adding value to cloth/wool—England (adding value to cloth/wool—enclosureenclosure))
 France (dynastic & religious wars)France (dynastic & religious wars)
 Decline of the great nobilityDecline of the great nobility
 Increasing financial dependence on gentryIncreasing financial dependence on gentry
(manufacturing & commerce)(manufacturing & commerce)