Build-up to the Renaissance

Economic Foundations

The Crusades helped create trade networks between Europe and the Middle East

Europeans were introduced to luxury goods from the Middle East, like Silk and Spices

More trade meant more money (for everyone!)

Because of Arabic Numerals, Europeans adopted a new system of booking that was much more efficient and reliable.

Banks also began lending money (credit) to traders/explorers to help fund business

Letters of credit increased the supply of money and expedite trade (i.e. everyone is making A LOT more money because of credit)

The Catholic Church disapproved of usury: lending money at high interest rates; and condemned the banks

This led to the Church losing more power over the people (especially in Northern Italy)

Secular: Separate from religion

Italy

During the Middle Ages, Italy was divided into groups of city-states (all republics)

The most important of these were: Florence, Venice, and Genoa

These city-states were the centers of trade for all of Northern Europe

They also had the easiest access to the Middle East

As a result, they made the most profits from trade

Machiavelli

Eventually, Italian city-states were ruled by the wealthiest families

The most famous were the Medici Family from Florence; who controlled most of the banking systems in Italy

Niccolo Machiavelli wrote one of the first modern treatise: The Prince

which was based on this new form of government power

The Prince

• Supports absolute power of the ruler
• The Ends justify the Means
• Advises that one should not only do good if possible, but do evil when necessary

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