Economic Concepts and Modern Historical Foundations

Agricultural Land Holdings

Smallholder

A small farm unit, typically under 5 hectares.

Latifundio

A large landholding, typically above 100 hectares.

Spanish Primary Sector Contributions

Primary sector breakdown (example percentages):

• Cereals: 38%
• Vineyards: 6%
• Olive Groves: 14%
• Horticultural: 8%
• Other: 12%

Note: The original text mentioned "total Spain brings to the U.S.", which was unclear. This section lists sector percentages.

Economic Phases and Sectors

Phases

Production, Distribution, Consumption

Economic Sectors

Primary Sector

Activities involved in obtaining food and raw materials from nature. Examples: agriculture, fishing.

Secondary Sector

Economic activities that transform raw materials extracted from nature into manufactured products. Examples: industry, construction, mining, energy holdings.

Tertiary Sector

Activities that do not produce a commodity but provide a service to society. Examples: trade, transport, health, education.

Factors of Production

Key factors include: natural resources, people (labor), capital, and knowledge/technology.

• Natural Resources: Resources that are renewable (not exhausted by use or can be regenerated).
• Capital: All non-natural resources used to produce capital goods. There are three kinds:
  • Physical Capital: Consists of material elements like buildings and machinery.
  • Human Capital: Refers to the training, qualifications, and experience of employees.
  • Financial Capital: The money needed to start a company and maintain its activity.
• Technology: The set of procedures used to produce goods and services. There are three types:
  • Manual Production: The human being provides the power and handles the tools.
  • Mechanized Production: That in which the machine provides the force, and humans control the tools.
  • Automated/Technological Production: That in which machines provide the power and control the tools.

Ideological Bases of Contemporary Society

• The importance of nature to human life.
• Confidence in reason.
• A proclamation of rights for all human beings.
• Defending a natural religion.
• Expansion of education.

U.S. Independence

Declared on July 4, 1776. Key aspects:

• Put into practice the concept of popular sovereignty.
• Participation in public life through the direct election of rulers.
• The first modern constitution was drafted.
• There was a popular revolt against the monarchy, becoming independent (a path that Spanish colonies would follow).
• A republic was founded based on democratic principles that drew millions of European and Asian immigrants in the 19th and 20th centuries.

The French Revolution

Causes

1. A severe economic crisis caused by successive poor harvests.
2. A financial crisis due to a trade deficit with other nations.
3. An ideological crisis fueled by Enlightenment ideas that questioned the principles of the Old Regime.

Legacy

• Equality of citizens before the law.
• The nation holds sovereign power.
• Recognition of the rights of man.
• Protection of private property and free markets.
• Establishment of a constitution.
• The separation of the three powers: legislative, judicial, and executive.

Principles of Liberalism

• The organization of life thanks to the constitution.
• Equality before the law.
• Separation of powers.
• Separation between religion and public life.
• Defense of individual liberties.
• Defense of private property.
• Freedom in economic activities.

Nationalism

The defense of the nation as the supreme goal. It relies on:

• Conservative Nationalism: Inspired by German thinkers.
• Liberal Nationalism: Inspired by the French Revolution.

Key Inventors and Inventions

• James Watt: Steam engine (Improved design widely adopted c. 1785).
• Edward Jenner: Smallpox vaccine (1796/1798).
• Samuel Morse: Telegraph (1844).
• Alexander Graham Bell: Telephone (1876).
• Thomas Edison: Practical incandescent light bulb (1879).
• Karl Benz: First practical gasoline-powered automobile (1886).