THE GREAT DEPRESSION...HITLER'S RISE

The German Empire was going strong with steel and coal production growing, and Germany was in hyper-inflation. During these years of prosperity in Germany, Hitler worked on building his Nazi party and proper placement. In 1929 the depression hit, Germany's industrial production folded in half and unemployment rose from 1.3 million to 5 million. The U.S. stock market crash and Germany's economic failure, as well as global economic crisis, worked in Hitler's favor. A economic collapse within a major industrial and agricultural global power would affect all the countries that trading occurs with. Hitler made promises, put government programs into place for "work and bread", and this contributed to winning the people over. Hitler had big business and people in high strategic places in his pocket and was appointed Chancellor in 1933. Hitler lifted Germany out of the depression through government spending and mainly focused on military. Hitler lead Germany into war and when Germany was overtaken in 1945, they were left in economic ruin with all the allies to pick up the pieces. Germany owed most major countries financial paybacks, but could not support its own economy. This left the alllies in financial set backs also. The world would have economic hard times for years following World War II.

INDUSTRIALIZATION

The industrialization started in England in the 18th century and began with the steam engine innovation. This was designed for coal mining and expanded over into textiles. This lead to more technology changes and innovation, bringing the Spinning Jenny. This boosted production and created demand for hand weavers to keep up with the yarn production. Well where the bottleneck showed up in production, an innovator quickly gave way to another technology upgrade. The United States needed to ramp up cotton production to keep up with the textile industry and therefore created a demand for more slaves to be traded and sold into the country.

This industrialization revolution was bound to mostly England and the U.S., but all the global markets would benefit from the trade and improvements. This industrialization also further lead to urbanization and problems maintaining such population explosions in the larger cities where production was booming.

GOLDEN AGE OF DUTCH REPUBLIC

The success of the Baltic Mother Trade and the domestic economy allowed the Dutch to expand trade globally in the early 1600's. This success came from the Dutch superior financial and economic standing over its neighbors and further they went on to establish large financial institutions.

When Portugal was under Spain's rule, they closed off access to its salt supply. The Dutch took off to find salt in Venezuela and ended up also finding sugar from the Carribean and began to help supply African slaves to the West Indie plantations that were experiencing a shortage of slaves. Soon the Dutch began establishing colonies and sugar plantations of their own. In a short period of time, the Dutch were in control of the sugar trade.

This new trading empire and continued struggle with Spain lead the Dutch to create its own navy for protection and expanded into its golden age. This time of splendor and prosperity was short lived though and by 1670's King Louis XIV launched a series of wars to take down the Protestants he had complete distain for. At the same time, England was gaining strength in their naval and economic powers and started attacking via sea. The Dutch succeeded to England to take over its economic, trading, and naval power primary status by 1700.

SPANISH SILVER - 16th Century

In 1545, silver and tin deposits were found high in the Andes mountain and by 1546 there were discoveries made in Zacatecas, Mexico of silver and gold as well. This drove trading vessels to continue back and forth in increasing numbers to bring supplies, but more importanly to bring back the bullion. The Spanish traders were required to bring all trade through the "House of Trade" in Seville. This brought great wealth into the area and exports all needed to come from throughout Spain and be loading on the ships at Seville. This increased trade and monopoly also set forth inflation for Spain and created higher prices. English sailors like Francis Drake began to pirate and attach the Spanish fleets looking for the Spanish silver. This silver was made into the Spanish milled dollar and was universally excepted, especially among American colonies. This coin was so popular that even the United States of America based its own currency on the Spanish milled dollar.

GLOBAL EXCHANGE ESTABLISHED

The beginnings of the first world market began with the European exploration and technology advancements in travel, ship and navigation. These improvements and discoveries brought the explorers out further to establish trading posts and settlements with the people of Middle East Asia and Africa. The Columbian exchange was established and trade amongst the Europeans and the Natives began. Voila...we have a global marketplace thanks to Christopher Columbus. This was the first major trading between the Old World and the New World. The term Columbian Exchange was exactly brought about from Historian, Alfred W. Crosby in 1972 from his book The Columbian Exchange.

The general population on both sides was greatly affected by this newly established trading exchange as Europeans brought: plants, weapons, and animals. The most important being the horse that was introduced to the Native American population. New foods were introduced on all parties involved in the Eastern and Western hemispheres. Vegetables and spices that one country had never experienced, would now become a staple to their native land.

Unfortunately the Europeans brought the smallpox, flu, and measles to the Native Americans and nearly wiped them out, and it is estimated that from 1492 until 1800 their population dropped from over 5 million to only 600,000. In return, the Europeans also took the Syphillis disease back to their homeland from travels abroad. Ultimately, the world was now exposed to global trading, gaining new experiences, and new eco-systems have begun.

One more important note to add about the Columbian Exchange and Global Market Economy. Europeans also introduced the peanut to SouthEast Asia and Africa where it took hold and produced large yields. This is quite important because where would the world be without peanut butter!!!!