Commerce in the City-States

Merchants The Polo family were

merchants They bought goods in

one place (the East) and sold them for a profit

Merchants bought goods ready to sell (ex: spices and fabrics)

Merchants also bought and sold resources that needed to still be manufactured

Business Model A This model would have been used widely

during the majority of the Middle Ages

Step 1: Masters of the wool guild together buy raw wool from a merchant

Step 2: Each master brings this raw wool to his workshop. Here it will be washed, combed, carded, spun and woven into cloth by journeymen. Then it is dyed and cut.

Step 3: The master pays his workers using Christian principles – they receive enough money to live and support their families

Step 4: The master sells the cloth in his shop or to a merchant

The Church teaches that the price of goods should be “just”

Way to make a living

Business Model B This model would have come into use at the end of the Middle Ages with the rise in

the merchant class

Step 1: Merchant imports a substantial amount of raw wool where it is then distributed to many shops and homes for processing

Each step of the cloth-making process is done by different workers in a different location

Some are members of a guild, others are not

Merchant owns the wool throughout the processes

Step 2: The merchant's goal is to make profit – lots of it

If he pays his workers less and sells his product for more, he has more profit

Step 3: The merchant often uses some of his profit to expand his business to in turn make more money

Q: In which model would you rather work? Why?

Q: Which model would lead to greater growth in trade and business? Why?

Q: What values does each model reflect?

Q: Which of these models do you think is in use today? Explain.

Ciompi Revolt! We learned that some peasants

in England and France revolted

In Florence, there was also a revolt

The revolt was led by the ciompi, poor day labourers or 'wool carders'

There was high unemployment among workers, especially those that did not belong to a guild

The ciompi wanted to form their own guild, but were denied

They called upon the lower classes to revolt

Government was briefly taken over, but they were soon defeated by the powerful guilds

Making Money with Money• It was not just merchants who

brought wealth, bankers did too

• Many banking houses were established across Florence

– Florence became so powerful that its currency became the most important

• Usury is the term used when charging interest on a loan

– This was considered a sin by the Church

– Church began to allow loans when they involved risk

Politics• Politics in city-states was

vastly affected by the changing economy

• Everyone wanted political power

– Nobles, bankers, new wealthy merchants, shopkeepers, craftsmen, etc

• Bankers and merchants soon came to realize that constant political struggle interfered with their business

• They started supporting strong leaders who promised stability

Competition

• Florence competed with other city-states in banking

• Bankers often travelled around Europe on business

– Led to contact with other cultures

• Wealthy Europeans, artists and scholars visited Italy

– Impressed by their beautiful cities and sophistication

• These two events allowed Italian values to spread across Europe

Black Death Depression?

• The economy went into a depression after the Black Death

• Italy did not fully recover until the early 1500s

• Many merchants and bankers still continued to grow through trade and commerce, though

• It is thought that this led to a surge in culture

– Wealthy people not affected by the depression spent their money on art

– They also spent money making the city beautiful

– Encouraged loyalty and pride