Medieval History
Dr. Woods
12/15/2017
The Economic Disparity of Medieval Florentine People
The economic disparity of the medieval Florentine people varied greatly between social status. What we know today comes from personal diaries, book-keepings and the Italian government’s earliest known attempt at compiling a record of Florentine population and wealth. Owning property gave the landowners a very stable source of income, while non-landowners, typically less wealthy merchants, had to find other means to spread the risk of their business ventures. Merchants spread their risk by working in partnerships and having geographically diverse businesses that were promoted by Florence’s location on the Mediterranean Sea. The …show more content…
The majority of wealthy people in Florence were those that benefitted from the stable income of rent. After the Black Death, the demand for residences and commercial property dropped, but Florence quickly regained its population through a wave of city migration. By the mid-1400s, Florence’s population was comparable to that before the Black Death. Now, it was again rare for a property to be vacant. Everyone was looking for a place to live or conduct business. The wealthy landowners took out loans to purchase their own homes, buildings, and property. This privilege of ownership afforded them rental income and the ability to pay off any outstanding loans; however, they incurred the expense of maintaining rental properties. Wealthy families also rented out farmland to the lower income farmers who would work the …show more content…
They were then categorized by industry, and then as Florentine companies in Florence, Florentine companies overseas, and older Florentine companies. In 1427 there were 137 Florentine companies doing business in other areas. Of those companies, 98 of them were considered to be high certainty. In comparison, of the 512 domestic companies, only 302 were considered to be high certainty. Companies were 14.5% more likely to succeed if they were international. Clearly, geographic diversification helped promote the success of businesses, which in turn decreased merchants’