The Médici were a powerful and importing banking family from Florence, Italy from the 1400. The family had great influence on the economy, politics and art of the city, some of that influence can still be seen today.
Their founder was Giovanni di Bicci, however his son- Cosimo il Vecchio, begin the family’s participation in politics. For many years, the family ruled over the city without any official title. How? Through a “Client System”, this is the wealth and power of the family allowed them to “exchange” favors to put in power however they wanted.
How did the Medici’s change the world?
They invented the middle class
Before the Medicis there were only Royals and commoners.Now thanks their power and money, a new social class was created- The middle class.
They invented modern Banking
The family popularized the use of double-entry bookkeeping and bills of exchange, these at the time were an innovation. Besides that, they found new and interesting ways to charge interest such as making a loan in one currency and have it repaid in another, letting the exchange rate add a few percentage points of profits.
The Double-entry bookkeeping, the letter of credit and holding Companies are some of the Medici’s practices banks still use on today’s world.
Modern Politics
The family operated as “benign dictators”. A benevolent dictatorship refers to a government in which an authoritarian leader exercises absolute political power over the state but is perceived to do so with regard for benefit of the population as a whole, standing in contrast to the decidedly malevolent stereotype of a dictator.
If you want to learn more about the family, I highly advise you to watch " Medici : Masters of Florence" starring golden globe winner, Richard Madden and Daniel Sharman.
I still found it amazing how economy changes but remains the same
ReplyDeletewhy change what it doesn't need to be changed
Delete