Putting Out System: Decentralized Production And The Rise Of Capitalism

The putting out system was a decentralized production method that emerged in Europe in the 16th century. It involved merchants distributing raw materials to workers who completed tasks in their own homes or small workshops. Workers used their own tools and equipment, and the finished products were returned to the merchant for sale. This system allowed for flexibility in production and enabled workers to work from home while earning additional income. It paved the way for the factory system and played a significant role in the transition to modern capitalism.

The Dispersed Nature of the Putting Out System: A Tale of the 16th Century

As the winds of change swept through the 16th century, a novel approach to manufacturing emerged: the putting out system. This unique system marked a departure from the traditional confines of workshops and guilds, introducing a decentralized and dispersed model of production.

Imagine a time when production was not confined within the walls of factories. Instead, skilled artisans and craftsmen labored in the comfort of their own homes, utilizing their own tools and workshops. Merchants, known as merchant capitalists, acted as intermediaries, providing raw materials and distributing finished goods. This dispersal of production allowed for a more flexible and adaptable response to market demands.

Characteristics of the Putting Out System: A Paradigm Shift in Production

In the annals of industrial history, the putting out system stands as a pivotal moment. This dispersed production system, which emerged in the 16th century, left an indelible mark on the world of work.

Worker Dispersal: The Scattered Workforce

Central to the putting out system was the dispersal of workers. Unlike the centralized workshops of the past, workers toiled in their own homes, often in rural areas. This decentralized approach allowed merchants to tap into a vast labor pool, reducing overhead costs and increasing flexibility.

Merchant Capitalism: The Rise of Intermediaries

The putting out system was a testament to the rise of merchant capitalism. Merchants acted as intermediaries between producers and consumers, providing raw materials, collecting finished goods, and distributing them to markets. This arrangement gave merchants significant economic power and influence over production.

Workers’ Tools and Workshops: A Personal Investment

Workers in the putting out system typically owned their own tools and workshops. This meant that they had a direct investment in their work, fostering a sense of craftsmanship and pride. The system also allowed workers to maintain a degree of autonomy, as they could set their own hours and work at their own pace.

Related Concepts to the Putting Out System

Cottage Industry

The putting out system was intertwined with cottage industry, a mode of production where workers labored from their homes or small workshops. These artisans and craftsmen possessed their own tools and often worked alongside family members, creating goods for merchants. This arrangement allowed for greater flexibility and adaptability to market demands.

Artisans and Craftsmen

Artisans and craftsmen were the skilled laborers who produced goods under the putting out system. They possessed specialized skills and knowledge, often passed down through generations. They worked diligently in their own workshops, creating products ranging from textiles to metalware.

Rural Industry

The putting out system flourished in rural areas. Merchants sought to capitalize on the availability of cheap labor in the countryside. Workers could supplement their farming income by engaging in production activities during off-season periods, contributing to a vibrant rural industry.

Peasants and Yeomen

Peasants and yeomen, who primarily worked the land, also played a role in the putting out system. They provided a pool of labor for merchants, especially during periods of high demand. These workers often performed tasks such as spinning, weaving, and knitting, supplementing their agricultural income.

Impact and Legacy of the Putting Out System

The putting out system, a pivotal period in industrial history, left an indelible mark on the landscape of production. Its dispersed nature and adaptability laid the groundwork for the advent of the factory system, revolutionizing the way goods were produced.

The putting out system’s flexibility was key to its success. Merchants, the central figures in the system, outsourced production to skilled workers in their own homes or workshops. This allowed for a dispersed workforce that could adapt to changing market demands with ease. When demand surged, merchants could simply distribute more materials to workers, while during periods of decline, they could scale back production without incurring significant fixed costs.

Furthermore, the putting out system fostered a spirit of entrepreneurship among workers. Instead of being mere wage-earners, they became independent contractors responsible for their own production. This led to a rise in cottage industries and skilled artisans. Peasants and yeomen, who previously depended on agriculture, found supplemental income in this burgeoning manufacturing sector.

The putting out system played a crucial role in expanding production. By utilizing the labor of dispersed workers, merchants could produce goods on a larger scale than had been possible with traditional guilds and workshops. This increased output stimulated economic growth and led to a wider availability of affordable goods for consumers.

In conclusion, the putting out system was a transformative system that paved the way for the modern factory system. Its flexibility, adaptability, and emphasis on entrepreneurialism left a lasting legacy on industrial history. By dispersing production and empowering workers, it expanded production, laid the foundation for capitalism, and ultimately shaped the course of industrial development for centuries to come.