The Dutch Tulip Crisis of the 1630's Essay

The Dutch Tulip Crisis of the 1630's Essay

Length: 897 words (2.6 double-spaced pages)

Rating: Better Essays

Open Document

Essay Preview


The Dutch Tulip Crisis of the 1630’s was a socio-economic disaster caused by greed and opportunity. It would seem that those words when taken out of context and examined today seem to describe recent and current speculative bubbles we have experienced in modern day society. Story has it that “in the 1630s a sailor was thrown in a Dutch jail for eating what he thought was an onion. That onion was in fact a tulip bulb. The cost of the sailor’s gluttony was equivalent to the cost of feeding an entire crew for twelve months” (Economist.com). While this story is probably just urban legend, herein lies the problem with the tulip crisis, it happened so long ago that many of the analysis is just pure speculation and “the line between fact and fiction is blurred” (Economist.com). That’s not to say that it still cannot be used as a valuable lesson into not letting us as human beings repeat such a dreaded type of history, but must be taken with a grain of salt as well during such analysis.
“Tulpenwoede (tulip madness) resulted in big increases in tulip prices. At the beginning of 1637, some tulip contracts reached a level about 20 times the level of three months earlier” (Economist.com). Popular belief is that this bubble was brought about by market irrationality, ideas that were advanced by Charles Mackay and what many current day scholars draw their analysis from. However it is important to remember that these are not the only hypothesis(s) that exist about the cause of Tulip Mania, and many economists have come forward with their own accounts of what caused the crisis. The two most popular opinions are of Peter Garber and Earl Thompson. I put blame on the general public for the price increases… I reckon that an outbreak of bubonic plag...


... middle of paper ...


...262
“Investor Manias through the Centuries.”
http://search.proquest.com/docview/223192012?accountid=8262
“Financial Market Bubbles” http://www.jstor.org/stable/40056811
Jones, Dan. “Bursting Bubbles.” History Today 59.8 (2009): 3-4. Historical Abstracts.
Kindleberger, Charles P. Manias, Panics, and Crashes: A History of Financial Crises. London: Macmillan, 1978.
Garber, Peter M. “Famous First Bubbles.” Journal of Economic Perspectives 4.2 (1990): 35-50. Historical Abstracts.
Thompson, E. A. (2007). “The tulipmania: Fact or artifact?” Public Choice, 130(1-2), 99-114.
Mackay, C. (2004) [1841] Extraordinary popular delusions and the madness of crowds.
Garber, P. M. (1989). ‘Tulipmania’. Journal of Political Economy, 535-560.
http://www.economist.com/blogs/freeexchange/2013/10/economic-history
http://www.vanityfair.com/online/daily/2013/04/logic-problems-bitcoin-bubble

Need Writing Help?

Get feedback on grammar, clarity, concision and logic instantly.

Check your paper »

Rembrandt van Rijn and the Dutch Golden Age Essay

- Rembrandt van Rijn is considered one of the most, if not the most, renowned artist from the Dutch Golden Age. His personal techniques and those he collected others created a successful art career. Through his life, his art evolves. Rembrandt constantly pushed towards something new, some different boundary. Rembrandt was born in Liedan on July 15, 1606 to a miller, Harmen Gerritsz and a baker’s daughter, Neeltgen van Zuybroeck who had nine or so other children as well. As her grew, before he became a painter, Rembrandt attended Latin school and continued onto the university soon after....   [tags: Dutch Golden Age]

Better Essays
1019 words (2.9 pages)

Essay on Nederland: The Dutch Plural Society

- The word “Nederland” was used to describe the geographical situation of the land, since “neder” is the Dutch term for low/down and “land” simply means land in Dutch. Since the country is very flat and not undulating, the name fits perfectly to describe this area. In the 15th century, the Netherland consisted of the upper and the lower land. Later in that time, both of the areas fell to a European Dynasty. The regions now became one country, known as the Netherlands. Holland is a slightly incorrect way to refer to the Netherlands....   [tags: Netherlands, Dutch, Holland, Hollander]

Better Essays
2632 words (7.5 pages)

The Dutch Of The Atlantic Slave Trade Essay

- Before the end of the Eighty Years War with Spain, the Dutch were a divided nation who relied heavily on imports by way of seafaring. Even during the rise of the Dutch provinces under Charles V, imports remained steady at twenty-five percent and would continue that way throughout the 17th century. To combat this, the Dutch became the most proficient importers in the world and soon their Dutch fleets were covering the entire globe. In the East Asian countries, the Dutch and the Portuguese were reaping excessive benefits from spice trade....   [tags: Caribbean, Slavery, Dutch East India Company]

Better Essays
1120 words (3.2 pages)

Dutch Republic Essay

- The Dutch Republic in 1650, being a formidable commercial, financial, and naval power at the time, faced many imperialistic challenges which led to the end of its golden age by the year 1713. The security of the Dutch Republic was consistently being challenged with wars because of weak military capabilities among the merchants, and this was viewed by the Dutch as a sign of an impending set of military conflicts and to foreign nations as a way to win over the republic. The wealthiest of the provinces, being Holland at the time, led to rivalries and jealous unequal provinces that all viewed Holland as a threat and also fought to get ahead of each other....   [tags: Dutch Economy, History]

Better Essays
1452 words (4.1 pages)

Dialogue Essays: Tulip

- Tulip When Lucinda and Frances got back home Mrs. Sagal was re-planting a shrub from a pot to the flower garden in the front yard. “Hi girls!” she said. “What have you two been up to. … are you hungry. I just finished my breakfast but I can fix something for you.” “Mom, it’s got to be lunch time by now,” said Lucinda. “Nope,” said her mom looking at her watch. “It’s only 10:15 … Is Frances spending the night. I assume you’ve had a talk by now.” “Yes, she’s spending the night … you’re spending the night, Frances, call your mom and let her know,” said Lucinda....   [tags: trolls, garden, baby]

Better Essays
1611 words (4.6 pages)

The Crisis." The English Crisis Analysis Essay

- Thomas Paine speaks in his Will of this work as The American Crisis, remembering possibly that a number of political pamphlets had came out in London, 1775-1776, under general title of “The Crisis." The English “Crisis” bears proof all over of having been written in London. It derived not anything from Paine, and he derived nothing from it, unless its title and this is too understandable for its source to require argument. There is no hesitation, on the other hand that the title was recommended by the English book, for the reason that Paine has pursued its method in bringing in a "Crisis Extraordinary." His work consists of thirteen numbers, and, in addition to these, a "Crisis Extraordinary...   [tags: american crisis, thomas paine, kinsman]

Better Essays
680 words (1.9 pages)

The Foreclosure Crisis And The Housing Crisis Essay

- Have you had a home foreclosed on in the past few years. Were you forced into a short sale to sell your home. Was there a bankruptcy. Are you now wanting to know if you are able to buy again. Congratulations, you are a Boomerang Buyer. According to Reality Trac, Millions of Americans who lost their homes during the foreclosure crisis are now poised to become homeowners again. They estimate that 7.3 million so-called "boomerang buyers" will return to the U.S. housing market over the next eight years....   [tags: Mortgage, Real estate, Subprime mortgage crisis]

Better Essays
1113 words (3.2 pages)

The Eurozone Crisis Essay

- Introduction Eurozone crisis can be seen as the most important economic problem of the European Union in the history. Because of that crisis the currency union have faced the possibility of separation which is an extremely critical issue not only economically but also politically. Until the subprime crisis which became prominent by the bankruptcy of Lehman Brothers in 2008, the economic level of the EU members were similar. When the bankruptcy occurred those countries started to differentiate in a very significant way....   [tags: Eurozone Crisis]

Better Essays
1921 words (5.5 pages)

The Crisis in Ukraine Essay

- If anyone has watched the news in the last year, I am sure they have heard something about Ukraine and Russia. This is not the first time these two countries have been in the news. According to a recent article about Ukraine’s history published by BBC News, Ukraine is a fairly new country. Ukraine was a part of Russia until the end 1991when Ukraine voted to become independent from Russia (“Ukraine Profile – Timeline”). This separation from Russia made Ukraine the second largest country in all of Europe (“Ukraine Profile – Overview”)....   [tags: Ukraine Crisis Essays]

Better Essays
2614 words (7.5 pages)

Essay about The Crisis in Ukraine

- Ukraine is an Eastern European country with a population of about 45 million. Before the Soviet Union dissolved in 1991, it was called The Ukraine, which means “borderland”. It lies to the west of Russia and to the east of the rest of Europe. For over two centuries, Russia has been trying to make Ukraine more Russian. Ukraine has been torn between the two (Russia and Europe, and more recently, the European Union) for a very long time. West Ukraine speaks native Ukrainian and identifies more with Europe....   [tags: russia, crimean crisis]

Better Essays
521 words (1.5 pages)