Global History 3 & 4 Kiana Mickles
September 24, 2012 10C
HISTORIC VS. MODERN-DAY ABSOLUTISM What precisely is inflation? Inflation rates can be a cause of one out of two developments. The first cause is the effect of the concept supply and demand; because when more people want a relatively scarce object, the price must increase. Children, too small to yet hold the concept of the economy may often ask, “Why is the country in debt? Why can’t the president just make more money?” This brings us to the second cause of inflation, which involves the government and the printing and borrowing of money. In order to pay off debt, the government must make the decision whether to borrow money or merely reproduce more. Nonetheless, printing doesn’t exactly solve our problems. If the government prints money, it results in a decreasing value of the dollar as they are less scarce. More money will be distributed through the economy; however the purchasing control of the people will not necessarily increase while supply is still limited. Prices will increase, and ultimately interest rates will increase as well. In world history a great example of inflation is in the 16th century, when the Catholic King Philip II took over Spain. Throughout his reign, Spain’s wealth begins to dwindle due to several reasons. Declining monetary value had a great toll on Spain when silver imported from the Americas began to flood the economic market and the initial value of silver began to buy less things. In addition, the economy could not keep up with Spain’s rapidly growing population. With limited supply and rising demand from the increasing customer population, merchants were given the opportunity to raise prices. Transitioning to modern-day India, the same idea of inflation is shown in recent graphs in which inflation rates are higher than they had been previously. Food inflation, for example is a great issue. The onion, which is known to be greatly inexpensive in India, has reportedly had a large spike in cost. The price of the vegetable that Indians in poverty can usually afford skyrocketing, is not a good sign for the economy. It is unclear of one direct cause of the inflation, but a combination of the Credit Crisis of 2008, a period in which there had been catastrophic shortage in money in the financial world, and food shortage. The presumable factor, failing agriculture directed from changes in the weather was also hindering the economy. Resulting from little harvest and a growing population (just like Spain’s!) the cost of nourishment increased startlingly.
Absolutism is a form of government that is based on the sole and unrestricted control of a ruler, such as King Charles of England. As the government evolved, rising numbers of monarchs attempted to limit the amount of power one ruler could obtain, and in 1689, the English finally succeeded in doing so when King Will and Queen Mary take the throne. Yet, let’s go back around 60 years, when King Charles I of England is chosen for the throne. Previous to his reign, England had been battling economic issues for decades, so in addition to money spent on war with both Spain and France; England’s economic condition was falling apart. King Charles is incredibly desperate for resources, and by the year 1628 he pleas to the Parliament in request for financial loans, and is given the funds with the acceptation that he includes Parliament in future government decisions. However, Charles continues as though he had never signed the petition, and cancels Parliament when people begin to question absolute monarchy. As his popularity dwindles an English Civil War is formed between two parties, the Cavaliers (those loyal to King Charles) and the Puritans (those opposed). In the end, Charles is beheaded by the opposing Puritans, who were heroically guided by Oliver Cromwell. Now fast forwarding to present-day Swaziland, we do not change the government type, and unfortunately nor do
