SOCB42 Oct 4 th
1. Fall of Rome
2. Warlord Land Grab
3. Bad for agriculture
4. Towns Rise
5. Foreign Trade Rises
6. Manufacturing develops
7. Barons Weakened
8. Agriculture develops
9. Commercial Society
Natural Progress of Opulence
Agriculture Manufacturing Foreign Commerce
Farmers Manufacturers Merchants
Country City International
Opulence: theory of how things are supposed to go (how country should develop)
Historical Causes of Wealth
Human nature says this should happen but most country doesn't become
rich. What is it that is blocking human nature from realizing full potential?
What Smith think would be natural developmental course if there weren't
any blocks (inhibitors)? Please see the table of the natural progress of
opulence. Why did he think this would be the natural course?
1) Pg. 482/3 Subsistence First: you have to take care of your basic
2) Moral Claim: the life of the farmer was the best life. Why? If you're a
farmer you have your own property, no boss to tell you what to do.
Less dependent on things happening n farther places. It’s less
uncertain. More control and it is beautiful. Compared to filthy city life.
3) Country-town reciprocity. The countryside provides all the raw
material to the town of what they need. The manufacturers also
supply stuff the farmers need.
This natural progression was blocked and never happened in Europe.
It happened the opposite way.. Started with commerce then move all
the way to agriculture.
1) Feudalism (what happened in Europe)
This worked against economical development and was deep routed in
people's life… uprooted unintentionally, tore apart though.
1) The fall of Rome: most advanced civilized society of its day. it then
collapsed. Which brought about the dark ages. Civilization collapsed. 2) Warlords then come in to bring stability to anarchy. Ended up
acquiring vast amounts of land throughout Europe. Control through
violence. Very violent place because of wars over land.
3) Bad for agri because land was used for power and protection. Many
laws created were made to maintain land in the same family. Example:
primogeniture - first-born son gets land; entails- laws that said a
noble family cannot sell their property. They became known as petty
princes according to Smith. Peasants lived on their property.
Everything they grew they give to the lord. In exchange for protection
from being killed. There were also knights. If there was a dispute
between peasants, the lord settles it. Lord also decided marriage. if
peasant dies property goes to lord. Peasants are a part of the
property. Example of a patronage society. Bonds connected all of
Bad for agriculture which is key to development..
a) Baron personality structure: they are warriors after glory,
honour and respect. They get rich and spend and party. Hosts
parties for knight to show off how powerful he is, reminding
the knights to be faithful.
b) Peasants are not going to be productive in this situation.
They only work to give to the baron so there is no incentive to
produce surplus (because its going to baron anyway). They
also had to do other extra work for the baron.
Conflicts / tensions within the structure: peasants vs. baron;; this
wont change structure. But the conflict that threatens the structure is
between the aristocrats and kings. Leads to major social change, when
something outside the basic structure can be brought in..the city.
After the fall of Rome the elites moved to the country side..
4) Rise of towns. Each person in the cities has equal dignity. Cities
became hot ground for testing democracy etc.. More, cities developed
more in countries where kings were weaker.
5) Foreign trade rise.. in Europe this was the first thing happening. 6) Greater demand for new products they were importing so they
decide to start manufacturing which they learned how o do through
7) Once manufacturing gets going, the power of the barons gets
weakened. Indirectly and unintentional. As town grow, new markets
were opened then new demand.. For all the raw produce from
countryside. so no more supplying barons with surplus for parties.
Manufacturers tried to buy land from the countryside. Manufacturers
have different personality ties than the barons.. They will