Inequality (W3&4)

• Economic systems prior to capitalism and globalisation all had a surplus of food, competition of resources, exploitation and a class system
• During the Neolithic revolution hunter-gathers transitioned to agricultural based food production which resulted in a surplus of food for the first time
• the surplus of food allowed the specialisation of labour which in turn developed class systems
• Slave labour allowed empires to expand and capture new land, resulting in more slave labour
• Pre Feudalism, a large number of slaves and peasants supported lesser numbers of merchants and nobles
• the Roman Empire continued to expand until it met geographical boundaries (eg. oceans, mountain ranges). Without continued expansion and the slave labour that came as a result, the empire began to collapse
• Feudalism evolved from the fall of the Roman Empire, where a large number of 'free' peasants provided labour in exchange for protection from lords and estates
• during Feudalism the church had immense power and wealth
• Feudalism began declining as a result of several factors including the Black Death, Protestant Reformation, a growing middle class and improvements in technology
• the Black Death saw the death of around 60-70% of Europe's population, of mostly peasants, with a smaller population to support the class system, the value of free men increased and Feudalism began to decline
• Protestant reformation saw the church loose power as education of the individual was encouraged and the reverence of priests decreased
• technological improvements in ocean trade saw a shift from Feudalism to Capitalism
• early globalisation was still largely local, with trade being economic in nature (not cultural or political) and simple due to high costs and long travel times
• the fall of the Roman empire due to an inability to keep expanding lead to medieval Europe and the foundation of Feudalism
• Feudalism was the dominant social system in medieval Europe, in which the nobility held lands from the Crown in exchange for military service, while the peasants (free men) were obliged to live on their lord's land and give him homage, labour, and a share of the produce, notionally in exchange for military protection.
• Feudalism began to decline due to several factors including: the black death which greatly reduced the peasant population, the protestant reformation (loss of power by the church), a growing middle class seeking change and improvements in technology.
• Merchant capitalism emerged out of Feudalism and was characterised by the rise of the middle class and the emergence of the merchant class. Due to the law of diminishing returns (growth only sustained if output is continuously increased), colonialism began
• Industrialisation occurred in three stages: Britain first, before expanding to Europe and then the world through colonisation
• Capitalism first grew as a result of technological innovation (in transport and manufacturing), allowing for increased production, the specialisation of labour (a landless labour class now paid a wage) and competition.
• Colonisation 2.0 took two forms: Exploited and Settler. Exploited colonies were exploited for their natural resources and labour. Little infrastructure or migration of citizens occurred unlike in Settler colonies. As a result Settler colonies had a comparative advantage in being about to participate in the global economy outside supply.
• the World systems theory splits political and economic power into three types: core (advanced in technology, knowledge and power), semi-peripheral (both exploits and is exploited) and peripheral (offering only low value exports).
• there are three economic activities: primary (raw materials), secondary (manufacturing) and tertiary (services). However this is very simplistic and does not take into consideration many factors.
• Capitalism today is defined as Neoliberalism: where MNCs dominate the global economy and the state is reduced to a role of regulating the market.