Economic Change: Introduction
In the eighteenth century, life for many individuals was a continuous struggle against poverty and uncertainty, with landlords and tax collectors casting a looming shadow. However, signs of change emerged as the European economy, rebounding from the crises of the seventeenth century, began a gradual expansion. Populations began to grow immensely and colonial empires like the Dutch Republic, France, and England led the way for economic expansion. Enclosure and engrossment transformed the landscape, gradually dismantling the open field system and propelling agricultural innovation. The emergence of a middle class and rising trade within Europe globally fueled consumption-driven changes and the eighteenth century’s emphasis on textile and iron production, as well as the advent of steam power, heralded a new era of industrialization, fundamentally reshaping production processes and societal structures.
In particular, Spain's economic trajectory during the 16th and 17th centuries was characterized by imperial ambition and eventual decline. The prosperity derived from New Spain's silver enriched the Spanish economy, propelling Spain to global prominence. However, mounting debt, military expenditures, and a decline in profitability from New Spain led to Spain's economic downfall, weakening its position in Europe and the New World.
At the same time, The Dutch Republic experienced a remarkable ascent to economic dominance in the early 17th century, capitalizing on worldwide trade and establishing itself as a global economic powerhouse. However, loss of control over trade and competition from rising powers like England and France caused the Dutch to slip from dominance, reshaping the economic landscape of Europe. While France grappled with economic development in the 17th century with Louis XIV's mercantilist policies and a strong agricultural base driving improvement, the French Revolution upheaved the economy in the late eighteenth century, plunging France back into hardship and uncertainty.
Italy's economic journey during this period reflects a rich tapestry of cultural brilliance and economic challenges. The patronage of the arts by influential families like the Medicis fostered a flourishing Renaissance, but the seventeenth century saw serious economic decline for Italy. Still disunified and racked with war, plague, and taxes from the Spanish Habsburgs, Italy relied on its agricultural foundation to sustain its communities through geopolitical turmoil and economic downturn.
Finally, the Holy Roman Empire, with its complex political structure, was characterized by economic variance and unpredictability as the Empire’s countless semi-autonomous rulers wielded considerable control over local economic policies. Despite brutal conflict both internally and externally, advances in state bureaucracy and civil service—as contrasted with the more laissez-faire attitude developing in France and Britain—paved the way for economic success in early Imperial Germany once the problems of decentralization were resolved by conquest.
Exhibit by Liam Atkins, Scott Gevurtz, Jack Hommeyer, Nathan Streiff, and Ben Stever-Zeitlin