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ECONOMIC TRANSFORMATIONS AND SOCIAL CHANGERS (Economic Growth (The…
ECONOMIC TRANSFORMATIONS AND SOCIAL CHANGERS
Economic Growth
Agrarian activities
Continued to account for most professional activity
In the 16th, the agricultural sector was encouraged by good harvests and the clearing of new land
Trade
Grew as a result of geographical discoveries
trade routes were diversified
new products from America were incorporated(tobacco, wood, coffee)
The
handicraft
sector
Avoided guild control by developing a system of homeworking
Business people provided the peasantry with raw materials and tools to make products at home
They would then collect them and sell them on
The emergence and early development of the
capitalist economic system
It was
mercantilism or merchant capitalism
, based on the accumulation of capital acquired from trade
The first banks were founded
Official ones(Taula de Canvi in Barcelona)
Private ones(Fugger, Medici)
There was also greater circulation of money and mercantile
Banking operations were closed
The first trading companies were established
Democratic Growth
During the 15th and 16th centuries
Population growth was favoured by
The eradication of the plague and relative peace
However population increase was slow because of the high death rate due to
Infectious diseases
The limited development in medical practice
The lack of hygene
The population Increase gave rise to higher demand for agricultural and handicraft products and simulated trade
Social Changes
The nobility and the clergy
Accepted the increased power of the monarch
They continued to be the privileged estates and maintained both their economic power and privileges
The bourgeoisie
grew wealthier with the transoceanic trade, business dealings and banking
They established their social status over the other commoners and especially the urban groups consisting of (minor artisans, merchants and waged workers)
The peasantry
Made up the majority of commoners
Their living condition improved in
Western Europe
They were freed from servitude and worked their own land
In
Eastern Europe
, the peasantry were more closely tied to the land