Ep 6. European Discovery Routes: East and West

An Economic History of the World Since 1400 season 1 episode 6 titled "European Discovery Routes: East and West" explores the rise of exploration by Europeans in the late 15th and early 16th centuries. This episode delves into the economics of the time, detailing how the desire for exotic goods like spices spurred the European and Asian economies.

The episode starts off by examining the Portuguese, who were the first to venture out in search of a direct route to the Spice Islands of Indonesia. The show explains how Portugal's exploratory efforts were funded by a unique system called the "royal trade monopoly," which gave the crown control over the nation's exports and imports. This funding allowed Portuguese explorers to set out and find trading partners in Africa and Asia.

The episode then brings in the Dutch, who would later challenge the Portuguese for control of the East Indies. By focusing on the Dutch East India Company, the show illustrates how the company's shareholders grew incredibly wealthy due to the high trade profits made possible by direct trade routes between Europe and Asia. The show presents the real figures, explaining how investors in the company could expect a nearly 40% return on investment per year.

But the Dutch were not the only ones turning a profit. The show makes a point of discussing Spanish trade routes, which were critical to their economy. Spain became a major player in the Atlantic slave trade and began importing goods from the New World, but these developments came at a cost. The episode goes into detail about the massive inflation that occurred in Spain's economy during this time, which ultimately led to Spain being surpassed as the rich powerhouse in Europe by the next episode.

Finally, the episode turns to the discovery of the Americas by Columbus, and the implications it had on the global economy. With new land came new resources and the potential for new trade opportunity. The episode explains how the Europeans sought to capitalize on these resources, but also how this led to devastating outcomes for many indigenous peoples to the region.

Throughout the episode, the show pays particular attention to showing how trade routes and trade goods affected the everyday person. It details how increased access to goods like sugar and tobacco changed European lifestyle habits, and how these changes eventually spread across the globe. The show is not afraid to address the controversial aspects of this time period either, such as the impact of the Atlantic slave trade and the exploitation of indigenous peoples for profit.

In the end, "European Discovery Routes: East and West" is a thought-provoking episode for anyone interested in the history of economics. It explores how trade and exploration fundamentally changed the world, and shows how even today we still feel the effects of these discoveries made hundreds of years ago.