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  1. 3. Crisis? Factors that may suggest there was a crisis Population Increasing Pressure on Food Supplies Moves towards Enclosure Specialised farming Changes in economic climate e.g. Cloth Industry Inflation Lower wages Rack Renting
  2. 4. Some wealth and for some difference between life and death
  3. 5. Key dates <ul><li>1349 Black Death and the beginning of recurrent bubonic plague epidemics </li></ul><ul><li>1470’s Beginning of population increase and inflation </li></ul><ul><li>1500 Prices started to rise more quickly than wages </li></ul><ul><li>1537 -48 Series of good harvests </li></ul><ul><li>1549 Poor harvests and widespread popular discontent </li></ul><ul><li>1552 Plague and sweating sickness checked population increase </li></ul><ul><li>1552-3 Beginning of decline in trade with Antwerp </li></ul><ul><li>1554-6 Severe harvest failures </li></ul><ul><li>1556-8 Influenza epidemics caused fall in population </li></ul><ul><li>1558 Loss of Calais </li></ul>
  4. 7. Demographic Changes - Population Increase and Impact <ul><li>Population increase 1500- 2.3m 1547 - 3 m </li></ul><ul><li>Increase in demand leading to </li></ul><ul><li>A) increase in prices (inflation) </li></ul><ul><li>B) Lower wages </li></ul><ul><li>C) increased rents (rack renting) </li></ul><ul><li>Government problems </li></ul><ul><li>A)Malthusian crisis? Food supply outstripped by population </li></ul><ul><li>B) Migration to cities/towns (reducing production and increasing inflation) </li></ul><ul><li>C) vagrants and beggars (Parliament passed a number of vagrancy Acts ) </li></ul>
  5. 9. Main cost for Tudor Governments? <ul><li>Main cost war </li></ul><ul><li>Henry VIII, Edward VI and Mary I wars against France, Scotland and France again. </li></ul>
  6. 10. Methods of raising revenue? Revenue Options Taxation Debasement Loans Crown Lands Sell and rent Reform and cut expenditure Potential problems Inflation
  7. 12. Debasement <ul><li>Coinage collected and melted down </li></ul><ul><li>Precious metal extracted </li></ul><ul><li>Mixed with ‘base’ metals </li></ul><ul><li>Increase number of coins </li></ul><ul><li>Initial profit as coins cost less and produce more </li></ul><ul><li>However reduces confidence in coins value causing inflation . </li></ul><ul><li>Similar to Germany in 1923 with bank notes </li></ul>
  8. 13. Debasement under the Tudors <ul><li>Henry VIII - debasement from 1544 and melted monastic treasures - serious effect </li></ul><ul><li>Mary I - advisers planned recoining 1556-1558 however war against France prevented this </li></ul><ul><li>1st Acts of Elizabeth was to restore coins true value - stabilised prices and slowed inflation </li></ul>
  9. 15. Loans under the Tudors <ul><li>Henry VIII and Edward VI borrowed heavily </li></ul><ul><li>1551 near bankruptcy - averted by loans from London Community </li></ul><ul><li>Under Mary I - Sir Thomas Gresham secured lower interest rates and paid foreign loans back. </li></ul>
  10. 17. Inflation - Impact <ul><li>400 % over 16th Century </li></ul><ul><li>1540-1560 prices doubled and rents at similar rate. </li></ul><ul><li>Alarming after previous century recession and deflation. </li></ul><ul><li>Set against wages which remained at best stable. </li></ul><ul><li>Real wages declined 1540-1560 by 50% </li></ul>
  11. 18. Causes of Inflation <ul><li>Poor harvests 1520 start process </li></ul><ul><li>Producers of other goods who need grain forced to increase prices to meet high grain prices </li></ul><ul><li>Population increases, increase demand </li></ul><ul><li>Moves towards specialised farming methods - wool, meat and leather - rather than grain production </li></ul><ul><li>Debasement </li></ul>
  12. 21. <ul><li>No win situation for government </li></ul><ul><li>A) Actions of government antagonised the landowners. </li></ul><ul><li>B) Lower orders angered as they failed to prevent it. </li></ul><ul><li>Group of liberal minded humanist thinkers labelled the ‘Commonwealth men’ criticised enclosure and those who supported it. </li></ul>
  13. 22. Summary – Crisis of finance? <ul><li>Crisis – YES </li></ul><ul><li>Clearly financial issues </li></ul><ul><li>Tudors increased problems by series of expedients e.g. Debasement / Loans </li></ul><ul><li>Crisis? NO </li></ul><ul><li>All governments have faced financial worries </li></ul><ul><li>Never forced into bankruptcy </li></ul><ul><li>Difficulties did not result in prolonged crisis </li></ul>
  14. 24. Poor Harvests <ul><li>Poor harvests in 1544-5, 1549-51, 1554-6, 1586-7 </li></ul>
  15. 26. Developments and difficulties in agriculture <ul><li>Development of specialised farming e.g. Wiltshire - diary farming.However led to shortages of grain </li></ul><ul><li>Main shift towards sheep and cattle due to demand for wool and leather. A move away from grain production, due to profits available. Impact on feed growing population and inflation. </li></ul><ul><li>Fuels trend towards enclosure. Plenty of land e.g. available by purchase of monastic land. Due to the dissolution of the monasteries. </li></ul>
  16. 27. <ul><li>Enclosure seen by contemporaries as the cause of all the problems of agriculture, explain high grain prices, increased vagrancy and periodic food shortages. 1549 ‘throwing down of the hedges’ first acts of rebels. </li></ul><ul><li>However other factors such as population densities and bad weather leading to poor harvests should not be ignored. </li></ul>
  17. 28. Economic Factors Increased Population Malthusian Crisis Migration/Vagrancy Inflation Lower wages Higher Rents Agricultural Changes Specialise Farming Problems for grain production and distribution Movement towards enclosure Poor Harvests Moves towards industrial economy implications for food production and unemployment
  18. 30. Mind Map crisis? Pressures of population growth Changes in agriculture Changes in industry Increase in demand Increase in prices, lower wages Increase in rents due To demand. Hardship Discontent Specialised Farming Increase in enclosure Profitable farming Failure of governments People forced off land Key industry Cloth Trade Less land for arable Slumps in demand Unemployment Migration to towns Lack of policy Increase in vagrants