The rise of capitalism

Definition

The rise of capitalism refers to the transition from feudal economies based on land ownership and agricultural production to market-driven economies characterized by private ownership, investment, and the accumulation of capital. This shift not only transformed economic structures but also influenced social relations, leading to increased urbanization, the growth of a merchant class, and the flourishing of arts and culture during specific historical periods.

5 Must Know Facts For Your Next Test

1. The rise of capitalism in Europe was closely linked to the decline of feudalism, which began in the late Middle Ages as trade routes expanded and market towns developed.
2. The Dutch Republic played a pivotal role in early capitalism through its merchant fleet and the establishment of joint-stock companies, which allowed for shared investment and risk among investors.
3. Art during the Dutch Golden Age was heavily influenced by capitalist ideals, with many paintings reflecting themes of wealth, commerce, and everyday life, showcasing prosperity in a newly emerging capitalist society.
4. Capitalism led to the emergence of new social classes, particularly the bourgeoisie, who were instrumental in both economic growth and cultural patronage during this period.
5. The rise of capitalism also saw the beginnings of modern banking systems and financial instruments like bills of exchange and promissory notes, facilitating trade and investment.

Review Questions

• How did the transition to capitalism affect social structures during its rise?
  • The transition to capitalism significantly altered social structures by giving rise to new social classes, notably the bourgeoisie, who became influential as merchants and industrialists. This shift contributed to the decline of feudal hierarchies as people sought economic opportunities outside traditional land-based wealth. Urbanization increased as people moved to cities for jobs in growing industries, fostering new cultural dynamics that were reflected in art and society.
• In what ways did Dutch Golden Age paintings reflect the values and ideals of capitalism?
  • Dutch Golden Age paintings often depicted themes related to wealth, commerce, and everyday life, capturing the essence of a society thriving under capitalist principles. Artists showcased scenes of bustling markets, still lifes featuring luxurious goods, and portraits of prosperous merchants. These works not only served as expressions of artistic talent but also as reflections of societal values emphasizing material success and individual achievement associated with capitalism.
• Evaluate the impact of early capitalist practices on artistic production during the rise of capitalism, considering both economic factors and cultural outcomes.
  • Early capitalist practices had a profound impact on artistic production by creating new economic opportunities for artists and shifting patronage away from solely religious institutions towards private collectors and wealthy merchants. This change fostered artistic innovation as artists began to cater to market demands for works that reflected contemporary life and values. The resulting proliferation of artworks during the Dutch Golden Age not only highlighted individual success stories but also underscored a broader cultural appreciation for commerce, humanism, and realism that characterized this transformative period in history.

Related terms

Mercantilism: An economic theory and practice that dominated European trade from the 16th to the 18th centuries, emphasizing state control over trade and the accumulation of wealth through a favorable balance of exports over imports.

Industrial Revolution:

A period of significant industrial growth and technological innovation that began in the late 18th century, leading to a shift from agrarian economies to industrialized ones and further fueling capitalist development.

Bourgeoisie: The social class that emerged during the rise of capitalism, consisting of merchants, industrialists, and property owners who benefited from capitalist economic systems and played a key role in shaping modern society.