capitalism is an economic system, but also a cultural system. It is characterized by innovation and investment to increase the economy. But today, we will focus on production and how industrial capitalism has changed. So let's say it is 1200 CE and he is a rugby dealer. Like retailers today, you sometimes need to borrow money to buy the tags you want to resell at a profit, and then pay that amount, usually with interest, once you have resold the tags. This is known as mercantile capitalism, and it has been a global phenomenon, from the Chinese, to the trading network in the Indian Ocean, to Muslim traders who will support trade travelers across the Sahara. By the 17th century, however, Dutch and British traders had expanded their idea of building joint venture companies. Those companies can pay for large-scale commercial shipments and spread the risks of international trade. But the thing about international trade is that sometimes boats sink or are taken by criminals, and even though that's bad if you're a sailor because, you know, you lose your life, it's really bad if you're a stubborn capitalist because you've lost all your money. But if you own a tenth of the ten boats, your risk is much better controlled.
That kind of investment inevitably increased wealth, but it only affected the population and did not create a culture of capitalism. Industrial capitalism was completely different, in terms of scale and performance. Let's putting Joyce Appleby's definition to the
industrial capitalism: "An economic system that relies on investment in machinery and technology used to increase the production of commodities." So when most of us think of capitalism, especially when we think of its decline - long hours, low wages, poor working conditions, child labor, unemployed Stans - that’s what we think. Admittedly, this is just one definition of industrial capitalism among many, but it is the definition we go with. All right, let's go to Bubble Thought. Industrial capitalism first flourished in Britain in the 19th century. Britain had many advantages - it was a major maritime power, and it made good money from its trade with its colonies, including the slave trade; and, the rise of capitalism was aided by a century-old episode of social unrest that erupted in the 17th-century British civil war.
Now, I do not encourage civil war or anything but in this case it was especially helpful because before the war, the British crown had set many rules for the economy: complex licenses, imperialism. But during the turmoil he could not force them, which created a free market. Another factor was the dramatic increase in agricultural production during the 16th century. As food prices began to rise, it became profitable for farmers, both large and small, to invest in agricultural technologies that would improve crop yields. Those high grain prices may be due to human growth, which was also fueled by the growing production of food crops. Many of these agricultural developments came from the Dutch, who had chronic feeding problems, and found that planting a variety of crops, such as clover, which added nitrogen to the soil and could be used to feed livestock at the same time, meant that many fields could be used simultaneously. This increase in productivity, ultimately lowered prices, and this encouraged innovation to increase yields for inflation. Lower prices have an added benefit: as food is cheaper and wages in England remain higher, workers will have a disposable income, which means that if there are consumer goods available, they will be consumed, which encourages people to make consumer goods better, and therefore cheaper.
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