The rise of capitalism

Definition

The rise of capitalism refers to the transformation of economic systems from feudalism and mercantilism towards a system where trade, industry, and the means of production are privately owned and operated for profit. This shift not only influenced economic practices but also shaped social structures and cultural developments, reflecting a changing dynamic between classes and inspiring new philosophical ideas during the era.

5 Must Know Facts For Your Next Test

1. The Dutch Republic was one of the first places in Europe to fully embrace capitalist practices, leading to unprecedented economic growth and wealth accumulation.
2. The rise of capitalism encouraged a new social class structure, with wealthy merchants and industrialists gaining influence, while traditional aristocracy began to lose power.
3. Art and culture flourished during this time as wealthy patrons commissioned works, reflecting both the economic prosperity and the values associated with capitalism.
4. Capitalist ideals encouraged individualism and personal achievement, which influenced the philosophical writings of the time, stressing reason and the human experience.
5. The establishment of stock exchanges and joint-stock companies marked significant advancements in investment practices, allowing for greater participation in trade and commerce.

Review Questions

• How did the rise of capitalism alter the social structure in the Dutch Republic?
  • The rise of capitalism significantly changed the social structure in the Dutch Republic by elevating the status of wealthy merchants and industrialists. This emerging bourgeoisie gained influence over traditional aristocratic families, shifting power dynamics within society. As commerce flourished, those who were able to capitalize on new economic opportunities became prominent figures, reshaping class relations and leading to a more complex social hierarchy.
• Discuss how literature and philosophy during the Dutch Golden Age reflected the values associated with capitalism.
  • Literature and philosophy during the Dutch Golden Age embraced themes of individualism, hard work, and rational thought that were closely linked to capitalist ideals. Writers explored the human experience and morality, often portraying characters who achieved success through diligence and intellect. Philosophers began to value reason over tradition, advocating for personal autonomy, which paralleled the emerging capitalist mindset that emphasized self-determination and economic independence.
• Evaluate how the rise of capitalism in the Dutch Republic contributed to changes in art production and patronage systems during this period.
  • The rise of capitalism in the Dutch Republic fundamentally transformed art production and patronage by shifting financial support from church and state to private citizens. Wealthy merchants became key patrons, commissioning artworks that reflected their status and values. This change not only allowed artists greater creative freedom but also led to a diversification of subjects in art that included everyday life and landscapes. The capitalist framework fostered an environment where artists could thrive based on market demand rather than solely on religious or political dictates.

Related terms

Mercantilism:

An economic theory that emphasizes government regulation of a nation's economy for augmenting state power, often through protectionist policies and colonial expansion.

Bourgeoisie: The middle class that emerged in capitalist societies, typically characterized by their ownership of capital and means of production, as well as their role in driving economic change.

Protestant Ethic: A sociological concept linking the values of hard work, frugality, and economic success to the Protestant faith, which played a significant role in promoting capitalist ideals.