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Lecture 10

HIST 1055 Lecture 10: Lecture 10: Finance

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Finance Explain the usefulness of two Dutch financial “technologies” (and what they did)> A London merchant upon finding out about the tulip bubble of 1637, might have shaken his head and said said, “That’s so Amsterdam.” Why? ● Sugar production doesn’t rise naturally to meet demand - forced and political power used at all stages of production ○ Enslaved laborers produced through war ○ Sugar produced with government support and relentless physical force ➔ Dutch Republic ◆ Declares independence in 1581 ◆ Made up of 7 major provinces and a few smaller towns ◆ Not urbanized around a powerful king - a federation ◆ Each province have representative - who meet/discuss political issues ◆ Maritime nation ◆ Begin to need to import materials - textiles, etc. ◆ Amsterdam ● Different culture than many places ● Cosmopolitan place ● Filled with refugees from Spanish war/rebelling dutch ● Unusual religious tolerance ● See themselves of citizens of the world ◆ Don’t have ● Monarchs ● High peasant population ● Large army ● Large land area ◆ Have ● Fleet of commercial ships ● Experienced sailors and merchants ● Urbanized population focused on jobs other than ag ◆ First “modern economy” ◆ Joint Stock Company
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