The Renaissance around the year 1350 and with it came Capitalism and the Guild System. Capitalism is a system that is based on the usage of investment money and the prices of produced goods are decided by the market. Guilds are business groups that were created to promote and protect a certain trade in a community or area. During this time there was a rise in the middle class. Capitalism became the dominant system during the Renaissance because it only limited imagination, creativity and ability, which the Guild system didn’t offer.
The Guild system consisted of making things that people need. A Guild was a group of people who all worked in the same field of work. The guild system consists of apprenticeship in which potential workers get taught…show more content… In the Guild system they only made goods when majority of the people wanted them. Even though Guilds gave their employees an education, home and a job they were a very close knit community and only accepted people who had the same skill set as them. With Capitalism a worker didn’t need to have a particular skill set, just the openness to learn something new. The hours and pay was not good in capitalist system but they did fulfill needs more so than the guilds. The main reason why capitalism did so well was because they competed with other companies over better prices and the quality of goods which were in favor for the consumer. Now when a consumer wanted a certain item, he could pick and choose from different companies depending on the material and price used for the item. Rather than in a Guild, where you had one set price- no matter how high it was, and if you didn’t like the material you couldn’t change it. Guilds had no competitors because each craft guild was the only one who has that skill and only who made certain products, and consumers had to pay a set price. Capitalism had many flaws in its system, but overall it benefitted the capitalists, consumers, and had a huge impact on Renaissance cities in expanding