Putting-out system

Definition

The putting-out system was a decentralized method of production that emerged in Europe during the late Middle Ages, where raw materials were distributed to individual workers or families to produce goods in their homes. This system allowed for increased production outside of traditional guild structures and contributed to the gradual shift towards a more market-oriented economy, impacting the decline of feudalism.

5 Must Know Facts For Your Next Test

1. The putting-out system allowed entrepreneurs to bypass the strict regulations imposed by guilds, facilitating greater flexibility and efficiency in production.
2. As workers produced goods at home, they could often work at their own pace, leading to an increase in overall output compared to traditional workshop settings.
3. This system laid the groundwork for the later development of factory-based production methods during the Industrial Revolution.
4. The putting-out system became particularly important for textiles, as raw materials like wool and cotton were distributed to rural households for processing.
5. The rise of the putting-out system contributed to the decline of feudalism by fostering a more mobile workforce that was less dependent on the landowning nobility.

Review Questions

• How did the putting-out system influence the relationship between workers and entrepreneurs during the decline of feudalism?
  • The putting-out system changed the dynamic between workers and entrepreneurs by allowing laborers to work independently from guild restrictions. Workers received raw materials directly from entrepreneurs and produced goods at home, which empowered them with more autonomy. This shift contributed to a growing class of independent producers who were less tied to feudal obligations, thus weakening the traditional feudal structure.
• In what ways did the putting-out system challenge the authority of guilds and alter economic practices in Europe?
  • The putting-out system posed a significant challenge to guilds by enabling entrepreneurs to sidestep their control over production processes. It encouraged competition and innovation as individuals sought to produce goods more efficiently than guild-controlled workshops. The flexibility of home production also led to greater market responsiveness, which ultimately transformed economic practices from rigid guild structures towards a more fluid and competitive marketplace.
• Evaluate the long-term impacts of the putting-out system on European economies and societies as they transitioned away from feudalism.
  • The putting-out system played a crucial role in the transition from feudal economies to more modern market-oriented systems. By decentralizing production, it promoted individual entrepreneurship and reduced reliance on feudal lords for employment. In the long term, this shift fostered urbanization as people moved to cities for factory jobs, influenced social mobility, and laid the foundation for industrial capitalism. The changes initiated by this system fundamentally reshaped European societies, creating new economic dynamics and altering social hierarchies.

Related terms

cottage industry: A system of production where goods are produced in homes rather than in factories, often involving family members in the labor process.

mercantilism: An economic theory prevalent in the early modern period that emphasized the importance of accumulating wealth through trade and colonization, often leading to increased competition among European nations.

guilds: Associations of craftsmen and merchants in medieval Europe that regulated trade, maintained quality standards, and protected their members' interests.