18th Century Economic & Industrial Revolution
The Industrial Revolution in 18th-Century England
England spearheaded the Industrial Revolution, showcasing its distinct stages. Beginning in the 16th century, an era of economic growth emerged, driven by international trade. By the mid-18th century, several factors converged: population growth, agricultural advancements, increased demand for raw materials like cotton and iron, the need for new energy sources such as coal and steam to power machinery, ongoing technical innovations from Scottish universities, the impact of railways, and changes in finance.
Colonial Trade
The growing demands of Western Europe and the colonies fueled the expansion of transport trade. This expansion coincided with the rise of colonial agriculture. The 18th century saw a resurgence in the slave trade from Guinea to the West Indies, benefiting the British.
State Control and Private Initiative
In the 18th century, Europe became the world’s economic center. Physiocrats advocated for laissez-faire economics, while Adam Smith championed free trade.
Banking and Financial Means
18th-century capitalist society inherited key financial instruments from the previous century: corporations, banks, and stock markets. England saw the development of provincial and local banks, while France established the Caisse d’Escompte in 1776 as a general bank. The primary financial centers of the 18th century were Amsterdam and London, the latter led by the Bank of England.
The 18th-Century Spanish Economy
The Agricultural Sector
Associations contributed to the development of other economic activities and the dissemination of Enlightenment ideas. Large estates in central and southern Spain hindered the growth of small peasant landholders. However, in the Cantabrian and Mediterranean peripheries, land distribution was more equitable, leading to greater prosperity for independent farmers and long-term tenants.
Colonial Trade: From Seville to Cadiz
During the 18th century, Spain made significant efforts to revitalize its economy. These efforts substantially reduced the national debt and increased revenue.