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Tulips of Destruction: Dutch Irrationality in the 1630s

Explore how Dutch departure from reason led to the infamous tulip mania in the 1630s, uncovering the consequences of speculation on tulip bulbs and the subsequent market collapse. Gain insights into the impact of the Mosaic Virus, French demand, and the aftermath of the crisis. Learn about the history, cultivation, and the economic implications of the tulip craze during this colorful period in Dutch history.

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Tulips of Destruction: Dutch Irrationality in the 1630s

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  1. Or, how the Dutch departed from reason during the 1630’s. The Tulips of Destruction! Michael Coates (Michel) Elementary French – Level 2

  2. What’s a Tulip? • Originally Bred in the Ottoman Empire • Generally Bulbous • Over 100 species2 • Grows in almost every country in the world. 1

  3. What’s a Tulip? • Usually grown from bulbs • Susceptible to a Virus 1

  4. Who done it? • Charles de l’Écluse • Worked at the Hortus Botanicus • Planted Tulips • Bulbs were continually stolen from his garden.

  5. A Documented Sale • 4.8 tons of Wheat • 9.6 tons of Rye • 4 “Fat” Oxen • 8 “Fat” Swine • 12 “Fat” Sheep • 126 gallons of Wine • 464 gallons of Beer • 2 tons of butter • 1000 pounds of cheese • “A complete bed” • A suit of clothes • A silver drinking cup 2500ƒ

  6. Why did the price increase? • True Market Forces • The Mosaic Virus • Speculation

  7. True Market Forces • Supply and Demand • Cultivation of Tulips • French Demand for bulbs encouraged investment

  8. The Virus • Caused streaking on the flowers petals • Weakened the cultivation cycle of the flower • The Virus was unpredictable

  9. How does speculation work?

  10. When did everything go wrong? • The whole system relied upon the Mythical final customer • Demand began to taper off when the price began to reach extremes

  11. The Aftermath • In February 1637, the market completely collapsed. • The investors who bought bulbs were unable to unload them onto customers

  12. The Aftermath • When contracts started to be annulled the government step in. • Contracts were enforced up to 3.5% of the contract’s value

  13. Also, there’s a boardgame.

  14. I didn’t come up with this. 1 Nusteling, H. (1985) Welvaart en Werkgelegenheid in Amsterdam 1540–1860, pp. 114, 252, 254, 258. 2 "WCSP". World Checklist of Selected Plant Families. Mackay, Charles (1841), Memoirs of Extraordinary Popular Delusions and the Madness of Crowds, London

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