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polet [3.4K]
3 years ago
11

What was the average Dutch annual income in the 1630s? At the same time, the price of one tulip bulb was approximately how many

times more than the average annual salary? What does this data show about the effects of runaway inflation on an individual's buying power?
History
1 answer:
Tpy6a [65]3 years ago
6 0

Answer:

1. Average annual income of 5000 guilders

2. the rarest tulip bulbs traded for as much as six times the average person's annual salary

3. When a currency's purchasing power decreases due to excessive inflation, serious negative economic consequences arise, including rising costs of goods and services contributing to a high cost of living, as well as high interest rates that affect the global market, and falling credit ratings as a result.

Explanation:

A number of factors contributed to the conditions that caused Tulip Mania. To start, the coin debasement crisis of the 1620s was followed by a period of prosperity in the 1630s. This prosperity coincided with an outbreak of the plague, which caused a labor shortage and increased real wages and surplus income.

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John Locke argued that people were born as blank slates, open to learning all things by experience.  Ultimately this meant Locke viewed human beings in a mostly positive way, and so his approach to government was to keep the people empowered to establish and regulate their own governments for the sake of building good societies.

Further explanation:

Both English philosophers believed there is a "social contract" -- that governments are formed by the will of the people.  But their theories on why people want to live under governments were very different.

Thomas Hobbes published his political theory in <em>Leviathan</em>  in 1651, following the chaos and destruction of the English Civil War.  He saw human beings as naturally suspicious of one another, in competition with each other, and evil toward one another as a result.  Forming a government meant giving up personal liberty, but gaining security against what would otherwise be a situation of every person at war with every other person.

John Locke published his <em>Two Treatises on Civil Government</em> in 1690, following the mostly peaceful transition of government power that was the Glorious Revolution in England.  Locke believed people are born as blank slates--with no preexisting knowledge or moral leanings.  Experience then guides them to the knowledge and the best form of life, and they choose to form governments to make life and society better.

In teaching the difference between Hobbes and Locke, I've often put it this way.  If society were playground basketball, Hobbes believed you must have a referee who sets and enforces rules, or else the players will eventually get into heated arguments and bloody fights with one another, because people get nasty in competition that way.   Locke believed you could have an enjoyable game of playground basketball without a referee, but a referee makes the game better because then any disputes that come up between players have a fair way of being resolved.    Of course, Hobbes and Locke never actually wrote about basketball -- a game not invented until 1891 in America by James Naismith.  But it's just an illustration I've used to try to show the difference of ideas between Hobbes and Locke.   :-)

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