The Decline of Feudalism: Rise of the Middle Class

Guilds were an early form of a worker organization, and they were important in the development of the middle class.

Guilds set rules and helped manage trade

Members of these guilds often lived in towns and cities and held some power. 

Members of these guilds did not fit neatly in the feudal hierarchy. 

They were neither peasants nor lords, but existed as something between the two

Guild members were part of the emerging middle class, and their power began to eat away at the structure of feudalism.

The middle class rose from the growth of towns and cities and disrupted the structure of feudalism

With the transition from a land-based to a money-based economy, land ownership was no longer the only source of wealth and power.

Different towns and regions began to specialize in different crafts

This specialization contributed to trade and interdependence among the towns and regions in Europe

A banking industry developed in Medieval Europe and enabled trade

Banks helped contribute to the growth of monetary economies.

Banks handled payments, stored savings, and made loans

Banks provided money to develop new businesses and even to help monarchs pay for wars.

Several cities in Italy, particularly, specialized in banking