Changes Within Europe: Government and Economics

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Changes Within Europe Government and Economics
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ECONOMICS
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Mercantilism
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Characteristics of Mercantilism

• 1. Power wealth gold or silver bullion
• Export more than you import a trade surplus.
• 2. Needs A strong state to control economics
• 3. Sea power control foreign markets.

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Characteristics of Mercantilism

• 4. Colonies provide markets for manufactured
  goods a supply of raw materials.
• 5. Trade is a zero-sum game.

Manufactured goods
MotherCountry
Colony
Raw materials
Cheap labor
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Capitalism a.k.a. Laissez Faire Economics
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Adam Smith (1723-1790)

• 1776 ? wrote
• The Wealth of Nations

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The Wealth of Nations
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Basic Capitalist Principles

• Individuals driven by self-interest
• The Invisible Hand (consumers choices)
• the economy is self-regulating!

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Basic Capitalist Principles

• 3. The Law of Supply and Demand
• Individuals free to pursue self-interest will
  produce goods and services that others want, at
  prices others will be willing to pay.

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Basic Capitalist Principles

• 4. Law of Competition
• Ensures production of needed goods
• 5. Government interference low
• Laissez faire Leave things alone.

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Government
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Absolute Monarchy

• Absolute Monarchy
• A ruler with total power
• Ruler backed by divine right
• (God-given right to rule)
• Tried to create trained bureaucracies, usually
  using the new middle class (bourgeoisie)

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Louis XIV

• Best example of an absolute monarch
• "L'État, c'est moi" (I am the State)
• Called The Sun King. (b/c he gave light and
  life to his subjects).
• Often shown as the Sun God Apollo

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Châteaux de Versailles

• Kings residence and center of government.
• Nobles required to live there
• Able to keep an eye on nobles therefore, power

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Henry VIII of England

• Broke with the Catholic Church b/c Pope wouldnt
  grant him a divorce from his first wife he
  wanted a male heir
• Founds and makes himself head of the Anglican
  Church (Church of England)
• Example of a monarch exerting personal power

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Constitutional Monarchies

• Some European nations developed Constitutional
  Monarchies, instead of Absolute Monarchies
• England is the best example
• English Civil War 1640s fought over who would
  hold more power, the King or the Parliament
• Parliament wins out (and chops off Charles Is
  head)- - they would rule TOGETHER

Boo Hoo. My heads are ALL gone.
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Balance of Power

• Idea that Europe would remain more stable if no
  one family/nation had too much power
• Nations had quickly shifting alliances to prevent
  too much gain
• European nation-states boundaries and identities
  being built at this time