Question

. Describe one economic system used in Europe during the Middle Ages or Age of Exploration and one economic system used during the Industrial Revolution. Then, briefly explain the important differences between these systems. (4 points)

Answer 1

1.First we can look at feudalism. Feudalism was a hierarchical system where the land belonged to the ruling class, mainly the ruler who gave the land to aristocracy in exchange of their services who in turn rented the land to the serfs who worked on the land. The main workforce were the peasants who created the produce and rent money.  

During the Industrial Revolution we get to the creation of the modern capitalism that emphasizes the private ownership of the means of production and as well the using of those means to generate profit. Here we have the accumulation of capital, private property, price system and competitive markets as well as wage labor.

2. Here already at the first glance we can see that there is a difference between who owns the means of production. In the feudal system the means of production are in the hands of the ruling class. In capitalism the means of production are in the hands of individuals. The profit generated in feudalism by peasants went mostly to the aristocracy while in capitalism the money goes to the one who earned it.

Also in feudalism peasants were renting the land they worked on while in capitalism we have the idea and the actual private ownership. In essence the land in feudalism belonged to the king and aristocracy while in capitalism the individuals own the land. These are just few differences between these two systems.