Genevieve DiSpirito
Genevieve DiSpirito
Period 7/8
5 June 2008
Bulbs, Barbarism, and the Birth of Capitalism
Throughout history, a vast number of the countries of Europe experienced continental supremacy at a given period during their existence. The ideal illustration of this assertion can be observed in Dutch history. The Netherlands prove to be the first true embodiment of capitalistic ideals and modern prosperity. With the Dutch Colonial Empire extending to all corners of the globe, the Netherlands exhibited a power and economic primacy never witnessed prior to its emergence. The foremost factor of this unseen affluence can be attributed to the rapid growth and development of Amsterdam, called the “crossroads of Europe” in its prime. The flourishing Amsterdam honed such prosperity due to the fostering of capitalism. The effects of the then-developing Dutch capitalism is most evident in “Tulip Mania” that occurred from 1634 to 1636, the peak of the “Dutch Golden Age.” This “Golden Age” remains unrivaled even today as the first true proliferation of modern economic principles.
The Dutch East India Company is the premier tangible evidence of the successes of the Netherlands on a global spectrum. Established in 1602, the Dutch East India Company (VOC) held a monopoly over all economic activity in the colonies of Asia, benefiting as the most dominant nation in spice trade. It was the first multinational country in the world and would soon be the largest as well. Having grown so substantially, the company can be regarded as a “quasi-government,” exemplifying power most associated with national governments: the ability to wage war, negotiate treaties, coin money, and establish colonies. In addition, it was the first company to issue stock, ushering in the modern practice of publicly traded corporations. “The Origin of Capitalism” reveals, “The Netherlands witness a creation of wealth which is capitalist in kind […].” With a dominance lasting approximately two-hundred years, the Dutch East India Company is the foremost exhibition of the prosperity of the Dutch Golden Age.
The Dutch East India Company can ascribe its boundless success to the development of Amsterdam. Amsterdam wholly controlled the company, securing 50% ownership throughout the trade company’s existence. The auspicious development of such a city dates back to the 1500s in which Hapsburg monarch Philip II of Spain controlled much of the Netherlands, murderously imposing Catholicism on the Dutch (“The Golden Age”). In 1578, the Dutch revolted against Spanish rule, engaging in war. Much to Philip’s chagrin, the Dutch gained independence in 1581 guaranteed by the Act of Abjuration (“The Golden Age”). The devastation of the conflict was far outweighed by the benefits wreaked. With Dutch independence came religious freedom (Hyma). Enticed by this liberty, wealthy Jews from Spain and Portugal, prosperous merchants from Antwerp, and French Huguenots fled to Amsterdam with the mass immigration that occurred (“The Dutch Golden Age”). As “The Dutch Golden Age” states, “[This] large influx of money and intelligence helped the rise of the Dutch Republic.” Working in conjunction with the absence of feudalism and the implementation of laws directed to the middle class, Amsterdam as well as the whole of the Netherlands began to thrive. As acknowledged by Geoffrey Treasure, “The Dutch showed […] that war could benefit a country’s economy; […] and that economic strength could provide a small country with the resources to hold its own against what in political and military terms might seem to be overwhelming odds.” In the seventeenth century, Amsterdam had reached unparalleled wealth. Its successes leaked into the economy of other nations as well, as the leading financial center in Europe (Dunaway). Amsterdam had become one of the most powerful cities in the world.
In the city of Amsterdam began a phenomenon unlike any other. A fruit of the breeding capitalism, the “Tulip Mania” began in a country that was the one of the first to recognize that luxury items yielded enormous profit. Mike Dash explained that the wealthy merchants of Amsterdam displayed their successes by erecting grand estates surrounded by flower gardens. This coincides directly with what would become the hungry desire of the Dutch to obtain the rare and beautiful tulip. Originating from Turkey, the tulip swiftly incorporated itself within Dutch living as palpable evidence of the Netherlands’ commercial success. “The popularity of the tulip […] reached its pinnacle in the years 1638-1637,” says Barbara Schulman. This was due to the ever-growing number of varieties and prices; it was soon an affordable luxury for all social classes. One rare tulip cost “4 bushels of wheat, 8 pigs, 12 sheep, 5 kegs of beer, a thousand pounds of cheese, a bed, a fine suit, and a silver cup” (Sjodin). This can be equated to thousands of dollars in contemporary U.S. currency (Ivkovic). The wealthy and proletariat alike desired to partake in the tulip trade. Lasting only a few years, the tulip would soon be worthless, leading to a country that would experience the pitfalls of capitalism as well as the prosperity.
In light of these reasons, the Netherlands can be accredited as being the world’s first exposition of capitalism. The growth of Amsterdam aided in the establishment of a republic that would be one of the most powerful in the world. With the commencement of the Dutch East India Company, Dutch dominance in the global economy was solidified. Even the Dutch “Tulip Craze” demonstrates capitalism at work in the developing Netherlands. The Netherlands truly laid the foundations for the capitalistic society that exists and thrives today.
Works Consulted
Dash, Mike. Tulipomania: The Story of the World’s Most Coveted Flower and The Extraordinary Passions It Arouse. New York: Three Rivers Press, 1999.
Dunaway, Wilma A. Emerging Issues in the 21st Century World System. Westport: Greenwood Publishing Group, 2003.
“The Dutch Golden Age.” 27 May 2008.
“The Golden Age.” Amsterdam Heritage. 27 May 2008.
Hyma, Albert. “Calvinism and Capitalism in the Netherlands.” The Journal of Modern History. Chicaog: University of Chicago Press, 1938. Vol. 10, No.1 3. 26 May 2008.
Ivkovic, Inya. “How a Simple Flower and Bulb Ruined Many in 17th-Century Holland.” The History of Tulip Mania. 27 May 2008.
“The Origins of Capitalism.” History of Capitalism. 27 May 2008.
Schulman, Barbara. Tulips. Minnesota: Minnesota Press, 2008. NetLibrary. 27 May 2008.
Sjodin, Terri L. New Sales Speak. New York: John Wiley and Sons, Inc., 2001. 27 May 2008.
Treasure, G. R. Making of Modern Europe, 1648-1780. New York: London Taylor & Francis Routledge, 1993. 27 May 2008.
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