The Profound Economic Impact of Resource and Wealth Discovery in the Americas on Europe

What was the economic impact in Europe of new resources and sources of wealth from the Americas?

Began the economic shift from feudalism to capitalism

The economic impact of new resources and sources of wealth from the Americas on Europe was significant. The discovery of the Americas led to the influx of precious metals like gold and silver into Europe which stimulated the growth of trade and commerce. The abundance of these precious metals increased the money supply in Europe, which led to inflation and higher prices for goods and services.

The discovery of new crops, such as maize, tomato, potato, and tobacco also had major economic ramifications. These crops were introduced to Europe and became essential in the food and beverage industry. The potato, in particular, transformed the European economy as it provided a cheap and easily grown staple food that could support a growing population.

The discovery of new trade routes to America allowed for the growth of international trade, and the establishment of major port cities such as Lisbon, Seville, and Cadiz allowed for the development of commercial centers. With the opening of new markets, European merchants could sell goods worldwide, expanding their commercial reach.

The influx of wealth from the Americas also fueled the European Renaissance, with the wealthy classes investing their newfound wealth in art, architecture, and education. This economic growth and increased standard of living led to the rise of capitalism, which laid the foundation for the modern capitalist economy.

Overall, the impact of new resources and sources of wealth from the Americas on Europe was profound and can be seen as a significant factor in shaping the modern globalized economy.

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