Key Economic Systems and 19th Century Political Ideologies

Economic and Social Transformations

Demographic Revolution

The Demographic Revolution is due to increased food production and, to a lesser degree, the progress of hygiene and medicine.

Impact of Railway and Steamship on Trade

The railway and steamship facilitated the establishment of a market economy by expanding market reach, particularly into foreign markets.

Defining the Market Economy

The market economy expanded local markets. This expansion was driven by free trade (or laissez-faire), which facilitated overseas delivery. However, this system often contrasts with protectionism, where tariffs must be paid when selling a product in another country.

Core Principles of Liberalism

Liberalism is a group of political, social, and economic ideologies centered on the freedom of the individual and the supremacy of the individual over the collective. This implies reducing the structures of government intervention to secure coexistence.

Principles of Liberalism:

1. Self-interest and the pursuit of maximum profit is the engine of the economy.
2. Balance the various interests in the market thanks to the price mechanism that adjusts supply to demand.
3. The state must abstain from intervening in the functioning of the economy and should allow the free development of individual interests (free trade or laissez-faire).

Understanding Capitalism

Capitalism is an economic system where the means of production are mostly private property. Capital is invested in the production, distribution, and trade of goods and services to achieve maximum profit or benefit in a free and competitive market.

Defining Marxism

Marxism is the set of philosophical, economic, and political doctrines coined by German thinkers Karl Marx and Friedrich Engels.

Socialism: A Political Doctrine

Socialism is a political doctrine tied to the social class of the proletariat, opposed to capitalism and the social class of the bourgeoisie. It aims at the socialization of the means of production, exchange, and transport, the abolition of social classes, and the distribution of wealth based on the contribution of everyone in the workplace.

Key Tenets of Anarchism

Anarchism is a set of philosophical and political ideas that share the rejection of the state and any form of authority, hierarchy, or coercion (physical, mental, or spiritual), as well as the belief in the supremacy of the individual.

Crisis of the Bourbon Monarchy in Spain

King Charles IV, fearing the spread of liberal ideas in Spain, declared war on France (1793–1795). The war was a failure. Manuel Godoy allied with Napoleon against Britain, and the French army was authorized to cross Spain to attack Portugal. The discontent of the population led to the outbreak of the Mutiny of Aranjuez (1808). Napoleon convened Charles IV and Ferdinand VII, who agreed to abdicate, leading to the appointment of Napoleon's brother, Joseph Bonaparte, as the new King of Spain.

The Spanish War of Independence (1808)

This event sparked a popular revolt. On May 2, 1808, there was an uprising in Madrid against the French troops. Juntas (governing boards) were created to lead the resistance, and patriotic groups organized into guerrillas.

The Constitution of Cadiz (1812)

The Constitution of 1812, drafted in Cadiz, reflected the basic principles of political liberalism.