18th Century Economic and Political Transformations

18th Century Economic Policies

Physiocracy: This economic theory, championed by François Quesnay, posited that a nation's wealth originated from the land, encompassing agriculture and mining. Land provided sustenance and raw materials, which artisans transformed into manufactured goods. Merchants then sold these goods, generating wealth. Economic Liberalism: This doctrine, developed by Adam Smith in his seminal work, The Wealth of Nations, asserted that individual effort aimed at maximizing profit is the source of wealth. Smith argued that a nation's wealth, accumulated through individual endeavors, benefits society as a whole. He advocated for minimal state intervention, proposing that supply and demand naturally regulate production, and prices are determined by the interplay between supply and demand.

The End of the House of Austria

Charles II of Spain died without an heir. In his will, he designated Philip of Anjou as his successor. This decision triggered the War of Spanish Succession.

The War of Spanish Succession

This European conflict pitted Spain and France against an alliance of Germany, Great Britain, the United Provinces, Savoy, and Portugal. The war concluded with the Treaty of Utrecht in 1713. Philip of Anjou was recognized as the King of Spain, but he had to renounce his claim to the French throne. The Southern Netherlands and Spanish territories in Italy were ceded to Austria, while Great Britain gained Menorca and Gibraltar. Savoy acquired Sicily.

A New Model of State: Absolutist Monarchy

Absolutist monarchy signified the concentration of all power in the hands of the king. The Bourbon dynasty marginalized the nobility from positions of political influence. Philip V aimed to establish a centralized state modeled after the French system. To achieve this, he abolished the historical laws and institutions of the various territories within the Spanish realm.

Economic Reforms Under Bourbon Rule

• Agriculture: Irrigation systems were expanded, and the practice of leaving land fallow was reduced.
• Industry: Modernization efforts were undertaken, leading to the growth of manufacturing. Royal factories, particularly for shipbuilding, were established.
• Internal Commerce: Improvements in transportation infrastructure, including the construction of new bridges and the widening of roads, facilitated the growth of internal trade.

The Age of Political Revolution

Causes of the Revolutionary Wave

Absolute monarchies began to give way to more participatory forms of government. The middle class emerged as the dominant force in society. Scientific advancements led to groundbreaking discoveries and technological inventions, ushering in an era of progress. The Industrial Revolution transformed economies, shifting them from primarily agricultural to urban and industrial.

The Outbreak of the American Revolution

Thirteen British colonies in North America grew increasingly dissatisfied with British rule due to a lack of representation and rights. The British government imposed new taxes, which the colonists opposed. A tax on tea exports sparked a revolt in Boston, known as the Boston Tea Party, which ignited the American Revolution.

The Creation of a New State: The United States

On July 4, 1776, representatives from the 13 colonies convened in Philadelphia to draft the Declaration of Independence, establishing the United States of America. Great Britain initially refused to recognize American independence, leading to a war. The American forces, under the leadership of George Washington, ultimately prevailed. The Treaty of Versailles, signed in 1783, formally recognized the independence of the United States. Spain and France provided crucial support to the American Revolution. The newly formed nation adopted a federal republic system of government, with its political framework outlined in the Constitution of 1787.

Key Figures and Events

• Treaty of Utrecht (1713): Concluded the War of Spanish Succession.
• Adam Smith: Proponent of Economic Liberalism.
• Boston Tea Party: Catalyst for the American Revolution.
• William I: King of Prussia during the unification of Germany.
• Montesquieu: Advocated for the separation of powers.
• Catherine II of Russia: Associated with enlightened despotism.
• Sierra Morena: Site of agricultural reforms in Spain.
• Constitution of 1791: Abolished feudalism in France.
• Louis Philippe of Orleans: Ruled during a period of constitutional monarchy in France.