ME 273 Lecture Notes - Lecture 10: National Diet, Mercantilism, Industrial Revolution
2 May 2018
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Question: With the transition towards economic modernity, going hand-in-hand with the
emergence of political modernity, refer to your readings for weeks 8, 9, and 10, to explain the
transformations observed in the dominant mode of production, modes of consumption, and the role
of the state’s ruling apparatus in ensuring the enrichment of Western nations and elites, and
supposedly as a means to achieve the common good. In your answer, please address what ideas
influenced modern economic theory, and what goals are behind new kinds of monetary and fiscal
policies, and investment practices, and discuss whether this economic system necessarily leads to
prosperity for all.
The Enlightenment era questioned different aspects and the form of society – its ruling authority,
mechanism and monopoly of economic activities. The emergence of new commercial and
consumer society publicized the fashionable and elites goods, which means that certain classes
with a growing pool of consumers now had access to luxurious commodities. Colonialism was
also a part of this period. In colonies goods that aristocrat i.e. the mercantilist and elites titled by
the religious institution: the Church, wanted to trade (for instance, cotton, coal and spices) in
order to benefit their economy, were produced. The transformation in the mode of production
was deeply rooted in Adam Smith’s notion of division of labor and then accelerated by the
Industrial revolution in mid-eighteenth and nineteenth century.
Adam Smith, in his book An Inquiry into the Nature and the Wealth of Nations, accounted for a
new economic and ideological system: capitalism that promoted the idea of liberalization and
privatization to acquire rights and freedom for property, thus forming a free market. Although his
work is critical of capitalistic notions yet later misinterpreted in terms of free market where the
owners of means of production i.e. the bourgeoisie, are the regulators and the benefiters. This
market is very different from pre-modern market where the use-value i.e. commodity, mattered.
Now, a new value is given to human’s private property which is the exchange-value: the money.
Bourgeoisie predominantly focused on the accumulation of wealth and property that led to the
impoverishment of lower classes while alienating laborers. Such ideas then unprecedentedly
transformed to independent and self-regulating market, therefore, complete government
deregulation is prompted. The monopoly is now under the hands of financiers, leading towards a
new economical era of neoliberalism. This paper will, therefore, focus on the transformations in
the mode of consumerism and production, in the ideas through which emerged a capitalist and
neoliberal society, on the monetary system and fiscal policies, on a reflection of this system’s
beneficiaries and the notion of fragmented prosperity.
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In England, during eighteenth century, improved communications and transportation catalyzed
the consumption of certain goods, which back then were considered as elites’ luxuries. This
emerging commercial society had allowed the inflow of “fast-moving fashion-consciousness in
dress and household goods.”(Brown, 1992: 131) For the first time people spent to consume
positional goods, which was upper class status based consumption. London was the financial hub
and base of this Consumer Revolution, and therefore, had an emerging national market to which
Porter accounted. He highlighted the powerful influence of advertisement in the promotion of
fashionable commodities. Imported goods like tea, sugar, cotton and chocolates remained no
longer expensive luxuries but were publicized and normalized in national diet. Similarly
entertainment industry was commercialized and was easily accessible by ordinary audiences.
This is how an American traveler posited, “the poor do not look so poor… [They] seem to be
better dressed and better fed….” (Brown, 1992: 132)
Since the period is also characterized by colonialism, where aristocrats had the monopoly of
trade and commerce i.e. mercantilism, goods that benefited the mercantilist market were
produced and imported from colonies. Mercantilism was attributed with its trade policy which
was to export more value and goods than importing, through domestic manufacturing to become
self-sufficient, and its alliance with military to stand against rival nations during the emergence
of nation-states. Although state ruling apparatus, the monarchical and arbitrary government,
regulated the economic trade, merchants were the only beneficiaries - allowing them to
accumulate wealth: mercantile capital.
With this transformation and circulation of wealth, the mass production of standardized
commodities were also prioritized to cope with mass consumption. “[T]he ‘consumer revolution’
is seen as an essential precursor of the better publicized ‘Industrial Revolution’,” analyzed Porter
(Brown, 1992: 134). Industrial Revolution began in mid-eighteenth century with the advent of
new machines and technologies; and was revolutionized with the invention of steam engine.
However, mass production is quintessentially grounded with division of labor, advocated by
Adam Smith in his renowned book The Wealth of Nations in 1776. He exemplified it with pin
production and elucidates how tasks’ division among labors would save time and increase
production. However, his notions are romanticized by bourgeoisie by neglecting their demerits
and the process is devoted to the accumulation of exchange value i.e. money.
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Document Summary
In your answer, please address what ideas influenced modern economic theory, and what goals are behind new kinds of monetary and fiscal policies, and investment practices, and discuss whether this economic system necessarily leads to prosperity for all. The enlightenment era questioned different aspects and the form of society its ruling authority, mechanism and monopoly of economic activities. The emergence of new commercial and consumer society publicized the fashionable and elites goods, which means that certain classes with a growing pool of consumers now had access to luxurious commodities. Colonialism was also a part of this period. In colonies goods that aristocrat i. e. the mercantilist and elites titled by the religious institution: the church, wanted to trade (for instance, cotton, coal and spices) in order to benefit their economy, were produced. The transformation in the mode of production was deeply rooted in adam smith"s notion of division of labor and then accelerated by the.
