A Caffeinated History of Economics
Free Markets, Politics, Media and the Coffee Shop
Coffee has undergone a complex evolution that mirrors the development of civilization itself. It began in Africa, but quickly found itself embedded in the emerging culture of the both Arabia and the Ottoman Empire. It quickly made its way to Europe through trade and warfare. By the mid-1600’s, coffee houses had arrived in places like London, Vienna, and Italy.
From the beginning, coffee houses were synonymous with conversation, debate, and politics. They were a major nuisance to irritated rulers from Mecca to London. They were meeting places that provided an equality of station and opinion not common in other parts of society. These traits placed coffee houses in an influential and unmatched position at the start of the industrial revolution.
Celebrity
As I sit down to continue this article, I often write Circa Navigate articles in divided sessions, I settle into ‘my’ seat at my favorite Peet’s Coffee and Tea. It is interesting to consider all the celebrities who wrote, worked, and negotiated in coffee houses throughout history. I think the atmosphere here is a little less raucous then the one experienced in 18th century Europe.
Bach, Beethoven, Franklin, and Voltaire among others had reputations that included a love of coffee and coffee houses. They also weren’t above brewing their own. Franklin was known for bringing a supply for any long sea voyage and Voltaire supposedly drank 40–50 cups a day. Coffee shops were the cultural Mecca’s of the day and these men were happy to partake. Mecca itself had transformed its appeal from coffee to religion and the houses of Europe were trying their luck at politics and finance.
Before we get to that transformation and the many others that would follow, we should note that coffee houses would continue to attract celebrities for centuries to come. As the 19th century began, coffee houses were the center of activity at Universities from Paris to Boston. Notable thinkers like Charles Babbage, George Peacock, and William Whewell began their own version of the Breakfast Club near Cambridge University. Eventually they formed the Analytical Society, which still exist today as the Cambridge Philosophical Society.
In the 20th century, famous writers from Hemmingway to Malcolm Gladwell would popularize Coffee Shops and Cafe’s from Austria to Toronto. This latest group would popularize the coffee shop writer, who today sit with their laptops across the western world, bitching about the price of latte’s and the speed of their Wi-Fi. It is a group for which I sadly have my proverbial membership card.
Penny University
While celebrity is fun. It was the place of the coffee shop as a location for community, communication, and equality that gave it the most influence in history. In London, they became known as Penny Universities. Some citations state this was inspired by the price of a cup of coffee at the time and could lead to a rather frustrating calculation of inflation rates… but I digress. Others note that certain coffee houses charged for admission, price — one penny.
This low cost ability to associate was new to western culture at the time. Only certain churches and pubs offered anything remotely close. Only, the preachers and priests were not too fond of parishioners conducting business in the pews. Free flowing alcohol and drunkenness was not that conducive for business or information either — a detail that limited the opportunity at the pubs(and many of the days churches). This made coffee houses unique social democratizers, both of information and opportunity.
The social component of coffee houses made them a burgeoning hot bed of political, philosophical, and financial debate. It also made them a great place to collect news and information. Not to leave an opportunity untapped, many coffee shops began printing their own newspapers both to assist in the dissemination of information and add a few more pennies to the coffers. The value of these publications ranged widely from earnest news to tabloids.
Along the way, institutions like Lloyd’s of London, the London Stock Exchange, and New York Stock Exchange would all call a local coffee shop their home. While Lloyd’s was founded in one, the stock exchanges moved in to take advantage of the wealth of information and connection available. In the age of exploration, coffee shops became the fastest way to procure global data.
Coffee shops would even function as pseudo post offices and office locations. Doctors, lawyers, and others would actually keep office hours at their favorite coffee shop. Professionals and entrepreneurs simply wanted to be where the people and information were.
The history of the coffee shop in many ways rivals the history of the internet. They are both forms of connectivity. They both gave rise to businesses based on an increased speed of information. And they both served to democratize access. But so far… the internet has yet to make a good cup of coffee!
For more information on the Philosophical Breakfast Club consider:
For more reading on coffee houses in history consider:
