The Putting-Out System (Proto-industrialization)
The putting-out system was a method of production common in pre-industrial Europe where a central agent or merchant capitalist would distribute raw materials to rural households. Workers, often entire families, would then process these materials in their homes using their own tools. The merchant would later collect the finished goods, pay the workers on a piece-rate basis, and arrange for the final production stages and sale. This system is often seen as a transitional phase between guild production and the factory system.
0
1
Tags
Economics
Economy
The Economy 2.0 Microeconomics @ CORE Econ
CORE Econ
Social Science
Empirical Science
Science
Related
Examples of Pre-Capitalist Producers
The Guild System
The Putting-Out System (Proto-industrialization)
Artisanal Production
Pre-Capitalist Economies vs. Capitalism
Consider an economic system where private property is protected and goods are exchanged in markets. The vast majority of production is carried out by individual artisans who own their own tools and workshops, or by families who work their own land. While a few organizations that hire workers for a wage exist, they are not the primary way goods are produced.
Which of the following statements best analyzes the fundamental organizing principle of production in this type of economy?
Economic Structure of a 16th-Century Village
Match each characteristic to the type of economic system it best describes. Assume both systems operate with private property and markets for exchanging goods.
Distinguishing Economic Systems by Production Method
If an economic system from the 15th century is discovered to have had both widespread private property and active markets for goods, it can be definitively classified as a capitalist system.
Distinguishing Economic Systems by Production Organization
An economic historian describes a 16th-century society where private ownership of tools and land is common, and goods are regularly bought and sold in a central marketplace. While most production is carried out by self-employed artisans and family farmers, a small number of large workshops also exist where workers are paid a wage. Why is this economic system best described as pre-capitalist rather than capitalist?
The Weaver's Ledger
An economic historian is studying a 15th-century European town. Her research uncovers legal documents protecting individuals' rights to own their homes, tools, and land. She also finds records from a bustling town square where goods like cloth, bread, and metalwork were regularly bought and sold for money. The historian concludes that because these two features were present, the town's economy was fundamentally capitalist. Which of the following statements provides the strongest critique of the historian's conclusion?
Comparing Production Roles