SEPTEMBER 27, 2011
The crusades stimulated long-distance trade.
Support systems stimulated trading states
Service trading brought about trading with other groups
Piracy and trade are essentially the same thing, just gone about with different means
In 1348 there was the outbreak of the black plague. Plagues and disease happened all the
time, but nothing like the black plague, where 50% of the continent died.
For the first time since the collapse of the Roman Empire there was a labour market.
All of Western Europe after the plague was a different place to be. There was a difference
of business organization and structure and sustained higher growth.
The idea of enterprise and business became really powerful creating bigger cities.
Helped create a whole new class of townsman, bourgeoisies, rule them, challenge the old
lords, and still make money. – fundamental, revolutionary movement that permitted
people to do things differently.
Initially merchants had to spends a lot of time away, sailing to other continents and
The style of early capitalism was risky by bringing money with them and goods back. It
was limited to how much a family could amass to trust to bring back the goods that are
What is needed then was an enforceable contract.
Several men would poo their money to say buy spices from the east. One without the
capital would agree to sail to the place to do it. One person would insure the venture.
Then a contract would be made that would ensure a fair split of whatever was gained.
This gave them the ledger to make them rulers of the town or city, because they were the
people who made the decisions.
It gave the opportunity to the poorer merchants to get a bigger return and a venture to see
how other societies work, an “education” per say.
Urban merchants were not fitted intot he third estates, nor were they fitted into the second
The success in business led to new expansion to urban growth because more capital
activity was in the city.
Since more capital was being made, there was need for more outlets.
Bankers use the surplus money to make loans and make money off of them off of the
Anyone with any extra money would often loan their money instead of saving it to get an
interest from it and make more capital.