Modern Age: Rise of States, Commercial Capitalism and Social Change

Top of the Modern Age

The modern age began in the mid-15th century. The feudal monarchies were replaced by authoritarian states; the feudal economy gave way to commercial capitalism. The bourgeoisie gained significance within class society. The Protestant Reformation broke the unity of Christianity. Humanism brought a new mentality that focused on humans, and realism prevailed.

Birth of Monarquía Autoritaria

In Western Europe, the feudal monarchies evolved into monarquías autoritarias (authoritarian monarchies), in which the king strengthened his power over the entire kingdom. This new political organization was called the modern state.

Political Limits and 16th-Century Theory

The king's power had certain limitations, such as participation of society through courts and the need to respect the laws and traditional costumbres of his subjects. Thus, it was not yet an absolute monarchy. In the 16th century, political theory emerged that strongly defended the king's power.

Economic Change

Economic structures transformed across agriculture, urban production, crafts and trade. Below are the main developments of the period.

Agriculture

Agricultural activities continued to be the majority. In the 16th century it was a time of expansion, thanks to good harvests and the clearing of new land.

Urban Activities and Crafts

Urban activities developed significantly. Crafts production increased due to population growth and the opening of new markets. To avoid the control of guilds, domestic industry also developed: an employer provided peasants with raw materials and tools so they could produce goods in their homes; the employer then collected the products and marketed them. (This is often called the putting-out system.)

Trade and Financial Innovations

Trade entered a boom period due to increased demand and the opening of new commercial routes. The circulation of money expanded along with bills of exchange, banking, credit and trading companies. These developments favored commercial capitalism.

Mediterranean Trade

Mediterranean trade focused on Italian cities, which served as hubs for goods moving between East and West.

Atlantic Trade

Atlantic trade grew in importance, with centers in the North Sea ports and on the Iberian Peninsula—particularly Lisbon and Seville.

Social Transformations

Society remained a class society, although important changes occurred. Key features include:

• Nobility and Clergy: These groups lost some direct power to the king but remained privileged and economically powerful.
• Bourgeoisie: The bourgeoisie rose socially because of enrichment through trade, business and banking.
• Peasantry: The peasantry of Western Europe was largely liberated from bondage and worked either their own land or as wage laborers for the lords.