Economy and Society in the Modern Era (16th Century)

Posted on Oct 27, 2024 in Geography

Consequences of Exploration

The Treaty of Tordesillas (1494)

On June 7, 1494, Castile and Portugal met in Tordesillas to divide the world between them, signing a treaty. The treaty was unfair, and at the time, they were unaware of the Americas, mistakenly believing they were in India. Consequently, Portugal gained only Brazil, while Spain claimed the rest of the Americas.

Maritime Trade and Commerce

The voyages of discovery led to a substantial increase in international maritime trade and commerce. New lands meant new markets, new food sources, and raw materials (spices, sugar, cocoa, tobacco, coffee, gold, silver, potatoes, and tomatoes).

Geographical Knowledge

• The Americas were discovered, correcting the mistaken belief that explorers had reached India.
• Confirmation that the Earth is round.
• The Basque sailor Elcano became the first to circumnavigate the globe.
• Realization that the Earth was larger than previously thought.

Disease and Exploitation

Those who followed Columbus were often motivated by greed and power. The indigenous tribes of the Americas were devastated by diseases brought by Europeans, against which they had no immunity.

The Golden Age

Hernán Cortés conquered the Aztec Empire in Southern Mexico, and Pizarro conquered the Inca Empire of Peru in the 1530s. Castile became a global power.

The Golden Triangle

Enclosure System

Landowners enclosed their land, primarily for cattle raising, displacing the poor.

Rural Exodus

Displaced people migrated to towns, becoming unemployed or industrial workers.

Factors of Industrial Development

• Communication: Railways and canals.
• Demography: Rural exodus provided workers.
• Capital: Colonial trade.
• Raw Materials: Coal, cotton, iron, etc.

Overseas Trade

In the 18th century, transoceanic trade increased due to colonial imports and the export of new industrial products to the colonies.

England exported industrial products to Africa and the Americas, and imported raw materials from these regions.

Economy in the Modern Era (16th Century)

Basis of the Economy

The economy was based almost exclusively on subsistence agriculture.

First Sector

Fallow System

Farmers cultivated only part of their land while the rest recovered, resulting in low production and frequent famines.

Cultivated Land

There was a need for more land to feed the growing population, but it was unavailable.

New Crops (from the Americas)

Potatoes, tomatoes, and beans were introduced.

Basic Diet

The basic diet consisted of cereals, wine, and oil.

Agriculture in the Basque Country

Agriculture was mixed with cattle raising, fishing, forestry, mining, and iron production, varying with the seasons. It was a subsistence economy, but food imports were necessary, requiring the export of iron tools.

Maize Revolution

Maize thrived in the humid Basque Country. Initially used for animal feed, it later became a staple food, used to make “talo” instead of bread.

Wool Trade

Castile’s merino sheep produced excellent wool, exported to Europe through Basque ports (Bilbao, Pasaia, Deba, etc.), enriching Castilian nobles.

Whale Hunting

Fishing was a vital food source. In the 16th century, Basques hunted whales in Newfoundland for food and, especially, oil.

Society in the Modern Era

The Nobility

The nobility owned vast lands worked by peasants who paid taxes and rents. There were three levels: Dukes, Counts, and Marquises; Knights (professional warriors); and Noblemen (“Hidalgos”).

• In England and the Basque Country, the nobility engaged in industry, unlike in Spain, France, and Italy.
• Due to the fueros (local laws), all Basques were considered noble, but not necessarily wealthy.

The Clergy

• High Clergy: High-ranking nobles, very wealthy.
• Low Clergy: Worked in small churches, lived modestly like the common people.

The Bourgeoisie

• The wealthiest people in the cities: merchants, bankers, lawyers, factory owners, clerks, etc.
• Prospered during the Golden Triangle.
• Intermarriage between nobles and wealthy bourgeoisie was common, exchanging titles for money. Titles could also be purchased from the king.

Peasantry

Ninety percent of the population were peasants, mostly poor and living on subsistence agriculture.

Different situations: Some owned small plots, others rented land, and some worked for wages.

In the Basque Country: Coastal peasants often supplemented their income with iron industry work.

The Outcasts

People of other races were marginalized.

Nobles/Aristocracy (Bellatores, 5%): Privileged, non-working, dukes, inherited land, received rent, large landowners, government posts.

Priests/Clergy (Oratores, 5%): Privileged, non-working, bishops, collected tithes, received rent, large landowners, parish priests.

Third Estate: Peasants, Factory Workers, and Bourgeoisie (Laboratores, 90%): Non-privileged, paid taxes, owned small land, peasants, migrated to towns, merchants, rich bourgeoisie, lawyers, Jews, Cagots, artisans.