Economics 210a: The Commercial Revolu7on January 25, 2012 J. Bradford DeLong and Barry J. Eichengreen U.C. Berkeley, Spring 2012, Evans 597 Readings for the Commercial Revolu7on •  Karl Marx (1867), "The So-­‐called Primi7ve Capital Accumula7on," Capital, Vol. 1, Part VIII, Chapters 26-­‐32. hXp://7nyurl.com/dl20090112k •  Daron Acemoglu, Simon Johnson, and James Robinson (2005), "The Rise of Europe: Atlan7c Trade, Ins7tu7onal Change, and Economic Growth," American Economic Review 95:3, pp. 546-­‐79. hXp://www.jstor.org/stable/
i387682 •  Jan de Vries (2010) "The Limits to Globaliza7on in the Early Modern World," Economic History Review 63:3, pp. 710-­‐33. hXp://
web.ebscohost.com/ehost/results?sid=2ed5a63b-­‐2aff-­‐4c71-­‐9e08-­‐
a3ca196c942a%40sessionmgr104&vid=2&hid=125&bquery=(JN+%26amp
%3bquot%3bEconomic+History+Review%26amp%3bquot%3b+AND+DT
+20100801)&bdata=JmRiPWJ0aCZ0eXBlPTEmc2l0ZT1laG9zdC1saXZl •  Jeffrey Williamson and Kevin O'Rourke (2002), "Aner Columbus: Explaining Europe's Overseas Trade Boom, 1500-­‐1800," Journal of Economic History 62, pp. 417-­‐56. hXp://www.nber.org/papers/w8186 Deep History Implied Global Growth Rates Memo: capital share of 0.3, resources share of 0.2 European PaXerns from Bob Allen (2001) European PaXerns from Bob Allen (2001) A Cross-­‐Eurasia Comparison from Bob Allen Why the Commercial Revolu7on? •  Adam Smith had an answer… •  The System of Natural Liberty –  Private property –  Market exchange –  Tolerable government •  The end of “feudalism” allows for this “system of natural liberty to emerge” •  The division of labor makes trade desirable, trade produces thrin and capital accumula7on, and capital accumula7on makes the division of labor possible: a virtuous circle Marx Has a Cri7que •  Karl Marx (1867), "The So-­‐called Primi7ve Capital Accumula7on," Capital, Vol. 1, Part VIII, Chapters 26-­‐32. hXp://7nyurl.com/dl20090112k –  Smith: government hands off –  Marx: government hands-­‐on •  Marx ignores Malthus… –  “Primi7ve accumula7on” not through thrin: rather the reverse •  Proudhon: property is then Marx Has a Cri7que •  Thrin is hard; corrup7on easier… •  Economies of scale? –  PeXy-­‐bourgeois utopians… •  Marx’s methodology? –  Natural history; history, utopian specula7on –  Assump7on that late feudalism was a utopia of small freeholders property that never was •  Assump7on needed to jus7fy his evalua7on of the nega7ve effect of capitalism… Marx Has a Cri7que •  Marx too focused on primi7ve accumula7on –  The upper class was perfectly capable of seizing value without jumping through the hoops of primi7ve accumula7on… •  Brutal origins of the modern bourgeoisie… –  “Free to starve” –  Dual meaning of freedom: free to make your choices, but also “freed” from all your property •  About choices, or about how people didn’t have many choices to make •  Extrac7on of a bunch of surplus value from internal and external proletariats •  Note to self: next year, assign the Manifesto for this week as well… Acemoglu et al. Have an Alterna7ve Story •  Daron Acemoglu, Simon Johnson, and James Robinson (2005), "The Rise of Europe: Atlan7c Trade, Ins7tu7onal Change, and Economic Growth," American Economic Review 95:3, pp. 546-­‐79. hXp://www.jstor.org/stable/i387682 •  What’s their answer? –  Trade from the Atlan.c –  Produced beXer ins7tu7ons Acemoglu et al. Have an Alterna7ve Story •  What’s their answer? –  Asian trade: not a huge amount of surplus… –  Cui bono from trade? •  Portugal: Portuguese monarchy… •  Spain: gold and silver—monarchy benefiXed –  The Wars of the Counterreforma7on •  Merchants of Amsterdam benefiXed •  Merchants of Bristol benefiXed •  Merchant power produces good ins7tu7ons –  Atlan7c trade produces merchant power in northwest Europe Urbaniza7on The Scale of Atlan7c Trade de Vries •  Jan de Vries (2010) "The Limits to Globaliza7on in the Early Modern World," Economic History Review 63:3, pp. 710-­‐33. hXp://
web.ebscohost.com/ehost/results?
sid=2ed5a63b-­‐2aff-­‐4c71-­‐9e08-­‐a3ca196c942a
%40sessionmgr104&vid=2&hid=125&bquery=(JN
+%26amp%3bquot%3bEconomic+History+Review
%26amp%3bquot%3b+AND+DT
+20100801)&bdata=JmRiPWJ0aCZ0eXBlPTEmc2l0
ZT1laG9zdC1saXZl Europe-­‐Asian Trade O’Rourke and Williamson •  Jeffrey Williamson and Kevin O'Rourke (2002), "Aner Columbus: Explaining Europe's Overseas Trade Boom, 1500-­‐1800," Journal of Economic History 62, pp. 417-­‐56. hXp://
www.nber.org/papers/w8186 O’Rourke and Williamson’s Thesis Asian Spice Trade Markups Asian Cloth Trade Markups