Unit 3: Capitalism, Agriculture, and Industry
Capitalism, an economic system based on the private ownership of productive power, made the Industrial Revolution possible by creating demands for goods and incentives for entrepreneurs to invest in production. Capitalism had its origins in merchant activity, but by the 17th and 18th centuries, it began to penetrate traditional agricultural and industrial sectors. New crops from the Americas and new ideas about agricultural production led to an Agricultural Revolution in Europe, resulting in growing populations as well as the creation of new wealth among landowners. Capitalism matured as an economic system in the Atlantic World, where investors used capital to buy land in the Americas and captive labor from Africa to produce consumer goods like tobacco, sugar, and cotton for growing world markets. Throughout the period, capitalist merchants tapped existing handicraft producers of manufactured goods, using saved capital to finance industrial production on a growing scale.
In this unit, we will analyze the impact of the Agricultural Revolution on Europe and see how it encouraged the growth of capitalism in Europe, across the Atlantic, and around the world.
Completing this unit should take you approximately 1 hour.
Upon successful completion of this unit, you will be able to:
- assess the effects of the Agricultural Revolution on European societies;
- explain the development of manufacturing in Europe and its effects on Asian industries; and
- describe how slave labor from Africa and natural resources from the Americas assisted industrial development in England.
3.1: The Agricultural Revolution
3.1.1: The "Columbian Exchange"
Read this article about the exploitation and trading networks that resulted from European colonization in the Americas. Pay particular attention to the Columbian Exchange which provided a new basis for new agricultural production in Europe, as new types of crops from the New World came to supplement the European diet, such as potatoes, corn, tobacco, beans, squash, peppers and cacao. For example, potatoes became a vital means of sustenance for the lower classes across Europe.
3.1.2: The Agricultural Revolution in Europe
Read this article to learn about the changes in agricultural productivity in England during the agricultural revolution.
3.1.3: Demographic Change in Europe
Read this article, which discusses how demographic changes affected urbanization in Europe.
Read this section, which includes some first-hand accounts of the demographic changes that resulted from urbanization and industrialization.
Read this article which gives accounts of how industrialization transform cities and the urban experience in terms of increased pollution, health and disease, poverty and destitution.
3.2: Proto-Industrialization
3.2.1: Rural Manufacturing in Europe
Read this article to understand how the "putting-out system" (also called the "domestic system") evolved during the 18th and 19th centuries in Britain.
3.2.2: Handicraft Production in Asia
Read this transcript of Louise A. Tilly's presidential address to the American Historical Association, which examines early forms of industrial production in South Asia, England, and France. She argues that early industrialization in England stunted industrial development in South Asia, while showing that European and Asian workers experienced major social changes as a result of their shifting economic roles.
3.3: Capitalism in the Atlantic World
3.3.1: Raw Materials from the Americas
Read this article to learn how slavery contributed to the development of industry in Europe.
3.3.2: Labor from Africa
Read this article to learn about the debates concerning the connection between slavery and industrialization.
Unit 3 Assessment
- Receive a grade
The period from roughly 1500 to 1800 witnessed the creation of the first truly global economic system. During this time, separate regions of the world grew more connected through trade and European colonization. These global connections laid the groundwork for the rapid development of European industry in the nineteenth century. Your assignment is to write a brief essay which explores these connections and their effect on the history of industrialization in response to the assessment question.
- This assessment does not count towards your grade. It is just for practice!
- You will see the correct answers when you submit your answers. Use this to help you study for the final exam!
- You can take this assessment as many times as you want, whenever you want.