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Lecture 3

LGST 101 Lecture Notes - Lecture 3: Middle Ages, Interest Rate, Barter

2 pages91 viewsFall 2016

Department
Legal Studies & Business Ethics
Course Code
LGST 101
Professor
Novikoff Alex
Lecture
3

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Chapter 3
Mai uestio e’e seekig to ase—what agents were powerful enough to effect the
major historic changes needed to bring about a market society?
-Rogue merchants: the first breath of commerce and commercial intercourse to a
Europe that had sunk to an almost tradeless and self- sufficient manorial stagnation. -Slow
urbanization of medieval life, the creation of new towns and villages
-The Crusades: sudden and startling contact between 2 different worlds -The gradual
aalgaatio of Euope’s fageted eooi ad politial etities ito lage holes, ad
thus markets (political and economic process)
-Exploration: opened up an invigoration flow of precious metals into Europe. Colonies -
The church grew in time to a position of commanding economic important: it was the largest
collector and distributor of money in Europe.
-Caliis: a dediatio to oe’s ok. Important values were thrift, economical, money
put to good use, not wasted away (condoned/accept the payment of interest). It was a highly
favourable stimulus for the evolution of the market society.
-Gradual monetization of feudal obligations and the impoverishment of the rural
nobility. The making of money was a tangential rather than a central concern of ancient or
edieal eistee. Eegee of laou as a ee uatu of effot, a oodit to e
disposed of in the marketplace for the best price it could bring. Property became capital,
manifesting itself no longer in specific goods, but as an abstract sum of infinitely flexible use
hole alue as its apait to ea iteest o pofits. The tasitio as ost paiful fo
the peasant, who became a landless labourer.
(major movement) Enclosure movement. The enclosure process provided a powerful force for
the dissolution of feudal ties and the formation of the new relationships of a market society. By
dispossessing the peasant, it created a new kind of labour force
landless, without traditional sources of income, however meagre, impelled to find
work for wages wherever it might be available. Emergence of the proletariat. Capital/money is
more important than labour/people. As far as 2000BC. Jesus made capitalist comments in the
bible, telling of his slave who carefully stored away his money instead of investing it and
earning interest. Interest rate 30-40% before Greeks, around 10% for Greeks and 4-8% Romans.
They were pretty much the same as they are today. Constancy of interest rates 4-8%, and
inflation 1-3%. Rome 600,000 people, 40% slave. Romans were the first to give to corporations
Maageet ats ae idig o shaeholdes age
-The notion/habit of being precise became important by the end of the middle ages.
Telling time too.
Middle Ages = Dark Ages
Population declined, trade declined. =Increasing decentralization: feudalism (political),
Manorial system: Lords had very big pieces of land. Lands were plowed by serfs. Profits went to
Lords. (+Common Pastures)
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