During the European Renaissance, both new wealth from overseas trade and the development of colonial empires made a vast influence on both new business and trade practices. Therefore, it has been the origin of financial dealings that are still used today. Without these practices, Europe’s economic atmosphere would have a completely different outlook. For that reason, the most significant change during the Renaissance was economically because of inflation, joint stock companies, and capitalism.
The first example of an economic change that occurred during the Renaissance is inflammation. The purpose of inflation was for rulers to stop deflation or when there was an urgent need to pay something off. To do this, rulers decided to increase the prices …show more content…
This also created a smaller percentage of buyers. Economist Jean Bodin said that the five reasons for inflation were “1) the abundance of gold and silver 2) monopolies 3) scarcity of goods caused by exports and waste 4) the luxury of kings and nobleman and 5) the debasement of coin. Overall, the large abundance of gold and silver was the central cause” (encyclopedia-of-money). Each of these reasoning’s was a crucial purpose on the use of inflammation. However, compared to the Middle Ages, the Renaissance was paradise. The Middle Ages did not even have the opportunity for prices to go up, due to the little amount that went around. Compared to the Middle Ages, the Renaissance was a lot more fortunate. With all of the inflation, there was very little that people could do to fight back. Taking in the whole situation was all they could do. This era effected the majority of Spanish by quadrupling the prices within a single century. In England, prices went up 100 percent while wages only went up 20 percent. The rise of prices finally reached a point in all of the countries that wages and …show more content…
Capitalism was a private ownership that invested in resources. Its purpose was for the wealthy to have as much access as they want at the cost of everyone else. Littell said, “The increase of prices and profits for trade and merchant allowed business across Europe dramatically grew” (Littell 573). This was when good from Asia such as spices and silk were being traded. They were in high demand, which then allowed a rise in Italy’s wealth. “Economist in England, America, and Western Europe—who were supposedly capitalism’s defenders did not defend capitalism effectively because they were not fully aware of the concept. They came to belief that the most defensible economic system was one of “perfect” or “pure” competition. Under perfect competition all businesses are small scale, products in each industry are consistent, consumers are perfectly informed about what is for sale and at what price, and all sellers are what economists call “price takers”” (www.econlib.org). For example, they have to “take” the market price and cannot charge a higher one for their goods. Companies that successfully adapted to these techniques of rivalry were the ones that quickly began to develop, and some came to dominate their industries. Though this did not last long, as a new superior method of satisfying the consumer’s demands was presented. The people at Ecolab stated, “Neither rivalry or product differentiation occurred
The first example of an economic change that occurred during the Renaissance is inflammation. The purpose of inflation was for rulers to stop deflation or when there was an urgent need to pay something off. To do this, rulers decided to increase the prices …show more content…
This also created a smaller percentage of buyers. Economist Jean Bodin said that the five reasons for inflation were “1) the abundance of gold and silver 2) monopolies 3) scarcity of goods caused by exports and waste 4) the luxury of kings and nobleman and 5) the debasement of coin. Overall, the large abundance of gold and silver was the central cause” (encyclopedia-of-money). Each of these reasoning’s was a crucial purpose on the use of inflammation. However, compared to the Middle Ages, the Renaissance was paradise. The Middle Ages did not even have the opportunity for prices to go up, due to the little amount that went around. Compared to the Middle Ages, the Renaissance was a lot more fortunate. With all of the inflation, there was very little that people could do to fight back. Taking in the whole situation was all they could do. This era effected the majority of Spanish by quadrupling the prices within a single century. In England, prices went up 100 percent while wages only went up 20 percent. The rise of prices finally reached a point in all of the countries that wages and …show more content…
Capitalism was a private ownership that invested in resources. Its purpose was for the wealthy to have as much access as they want at the cost of everyone else. Littell said, “The increase of prices and profits for trade and merchant allowed business across Europe dramatically grew” (Littell 573). This was when good from Asia such as spices and silk were being traded. They were in high demand, which then allowed a rise in Italy’s wealth. “Economist in England, America, and Western Europe—who were supposedly capitalism’s defenders did not defend capitalism effectively because they were not fully aware of the concept. They came to belief that the most defensible economic system was one of “perfect” or “pure” competition. Under perfect competition all businesses are small scale, products in each industry are consistent, consumers are perfectly informed about what is for sale and at what price, and all sellers are what economists call “price takers”” (www.econlib.org). For example, they have to “take” the market price and cannot charge a higher one for their goods. Companies that successfully adapted to these techniques of rivalry were the ones that quickly began to develop, and some came to dominate their industries. Though this did not last long, as a new superior method of satisfying the consumer’s demands was presented. The people at Ecolab stated, “Neither rivalry or product differentiation occurred