Essay #1 The increased production and flow of silver during the mid-16th century to the early 18th century caused many social and economic effects all around the world. It helped increase the integration of Europeans in the world trade, hurt Spain’s economy, and created more economic opportunities and greater social divisions within China. The flow of silver during this time had a large effect on the division of social classes in China. Documents 1, 3, and 7 show the greater social division in China due to the over-production of silver. Document 1 [Ye Chunji] gives a quote about how Chunji has noticed the social gap and how the upper class is becoming increasingly unsatisfied and greedy; whereas document 3 [Wang Xijue]tells more of the economic social gap between the two main classes and explains how the economy is aiding the social gap through the harvest.
This combined with the current fuel climate and oil prices result in a lot of demand for bio-fuels which is why 20% of American grown corn goes on bio-fuels. Like a rise in income this also shifts the demand curve to the right and results in demand pull inflation. This can be illustrated by the same diagram and the same shift from P1 to P2. In conclusion the prices of grains such as corn and wheat have risen as a result of multiple demand side factors. In 2007 was when the rise in disposable incomes in China and the rise in demand for bio-fuels saw significant rises which in combination caused a large price rise as a result of demand pull inflation.
When the consumers were making the sugar cane and the fields, the more slaves they had, the more sugar produced and more money. Slavery helped majorily in the sugar trade with their work and labor, before the machines took their jobs. Many people wanted slaves so bad that they would basically trade anything like bullets, pipes, powder, and more. The cost of slaves in the West African coast compared to the British Caribbean, showed in document 9, was double the cost. The price for slaves increased dramatically for the reason of sugar trade.
The economic impact of the global flow of silver in Spain during this time period can be easily seen in documents two and six. Document two, (Tomas de Mercado) demonstrates that the ballast stones used in the ships on the outgoing trip were replaces by the large amount of silver during their return trips; while document six, (Antonio Vasquez de Espinos) claims that between 1545 and 1624, a total of approximately
In 1848, newly produced gold increased the U.S. money supply. This made U.S. exports more expensive and caused a deficit in the balance of payments. Also, this meant it would raise their discount rates, speed of gold flow, and facilitate a gold outflow. Countries,
The Social and Economic Effects of the Global Flow of Silver Today, silver is precious and expensive and not used as an everyday thing, however, between 1500 and 1750, silver was essential around the world. The global flow of silver produced social and economic effects worldwide. Europe, Asia, South and North America were all greatly affected by this. In China, the Ming Dynasty ordered taxes and trade fees were paid in silver. The heavy flow of the silver greatly affected China's economy.
Gold and silver were transported to India where merchants transported crops from India to the East African Coast. But, the Columbian Exchange brought new crops and more silver to the Indian Ocean region which provided new types of resources and goods for trade. A change would have been the increased involvement of European traders because they began to colonize and have economic ambitions. For example, Europeans began to open their own trade ports throughout the Indian Ocean region. The Opium trade with China profited the British by having the Opium produced in India and transporting it to China for trade.
Silver Trade DBQ The abundance of silver in Europe and the Americas had a great impact on the Chinese economy as the demand for silver by the Japanese and Chinese greatly increased to match the supply during the mid-sixteenth to the early eighteenth centuries. Based on the Documents, Spain had much to gain economically by selling their abundance of silver to the Ming Chinese and Japanese while the Chinese and Japanese economies suffered due to the deflation of silver in their own regions. These fast economic changes caused drastic change socially by changing the standard of living as well as the mindsets of the people toward the silver trade, such as the issue of slavery, reflecting on their government. All the while other European countries such as Britain and the Portuguese were able to take advantage of the supply and demand of silver to make money as middlemen. The Spanish were able to mine the silver with some economic benefit quickly turning into negative inflation, and the British were able to buy from the Spanish and Japanese and sell to the Chinese as middlemen.
Another core cause examined is economic expansion. Among the recent debates about spending cuts and tax increases, it really calls to attention that America was born from an economic expansion. In about 20 years, 1747 to 1765, American exports doubled, as did the imports. As a result people became rich in this flourishing economy, but more importantly a sort of aristocracy, such that has never been seen in America before, is created. As sure as taxes, the clash of the classes begins.