The process of development started in Britain. A transformation from a feudal to a
market economy was a very slow process and took about 1600, with the arrival of the
Traditional economy - Sons do the same as their fathers, and trade guilds ensure that
things are created to a certain standard. Things change in tiny ways, but it functions
because it!s always functioned before. There is little innovation.
Command economy - There is central planning. Decision makers decide what should be
created and how it is distributed. The USSR Five Year Plan. Until the 19th century, the
primary model of economy was Traditional and Command. Economics, production and
distribution really developed as its own ﬁeld after the 19th century.
The Feudal system is interesting because it had to be overcome for the market to
emerge. The feudal system is static and rigid. Serfs could not leave or move and were
tied to a particular piece of land and lord for generations. It was a social obligation, and
it was a relation of economic dependance.
The Feudal System:
-Labour is not a commodity - Serfs were not able to sell their labour
-Land is not a commodity - Land was not considered outside of their social context.
There was no market for land, it was not a source of wealth.
-Property is not a commodity - Wealth was spent on jewelery and spices, it was not
spent on capital.
Open ﬁeld system, manors with common areas for use by both serfs and lords. The
enclosure process was slow and irregular, which was the privatization of common land.
This transfered land from a birthright to a productive use. The enclosures were legalized
and enforced through a series of government acts when privatization was fought. Serfs
disputed this privatization, so the lords called on the government to bring in laws. The
government passes these laws and steps in on the side of the lords. General Enclosure
Act of 1801. What changed? Why did the feudal system work for centuries, and then it
changed? Surplus was not really necessary, there was only so much you could do with
the time you were given. Then came the invention of agricultural machinery, enabling
crop rotation. The industrial revolution is driven my privatization of property, which
comes about because land is now a commodity because it is able to worked more then
it had prior. The agricultural revolution.
The enclosures forced people off the land and created a labour force. Serfs had been
able to use the common land, and they were no longer able to. People start to move to
industrial centers in order to sell their labour. The enclosers turned both land and people
into a commodity. Food production is also increased, and the increased food can be
used to feed factory workers. Industrial revolution began 1750 - 1850.
The ﬁrst factories in the I.R. were textiles. Textiles were made in home, and was a long
and intensive process. The organization of the textile industry was complicated and