Economics through History

Europeans’ medieval beliefs and institutions led to profound political and economic changes that began in the 13 colonies and continued when the colonies united. Changes included capitalism and industrialization. Many ideas that took hold in the colonies could be traced back to the Scientific Revolution, an era that lasted from about 1550 to 1700. It began with Nicholas Copernicus, who proposed a sun-centered cosmos.

Copernicus was one of many people who used experiments and mathematics to explain natural phenomena. These explorations led to new beliefs and disproved many existing beliefs. The emergence of modern science was marked by developments in mathematics, astronomy, physics, chemistry, and biology. In addition, the Scientific Revolution fostered the creation of a new intellectual movement.

The Enlightenment, also called the Age of Reason, was part of culture in the late seventeenth and early eighteenth centuries. The movement focused primarily on freedom of speech, equality, freedom of the press, and religious tolerance. Reason and facts were considered more important than church ideology. Many of the ideas of the American Revolution formed during the Enlightenment.

In the eighteenth century, the Agricultural Revolution paved the way for the Industrial Revolution. Improvements in agriculture included better farming techniques like crop rotation and new technology like the seed drill that allowed seeds to be planted at an exact depth and space.

With improvements in agriculture, more crops were produced so more food was available; therefore, prices were lower. In addition, breeding large animals led to the production of higher-quality meat. People could afford to eat better, so they were healthier. This led to population growth.

Because of advances in technology, fewer workers were needed to work on farms. This left a large number of people in the labor force unemployed. The Industrial Revolution resulted in an increase in production made possible by the use of machines and often by the use of new energy sources such as steam and coal. Unemployed workers could find work in cities, where most factories were located.

KEEP IN MIND . . .
Without the factors of production, land, labor, capital, and entrepreneurship, there could be no industrialization.