jan 1, 1550 - Capital vs. Labor (1550)

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The divergence of capital and labor was key to the formation of modern industrialism, but it began during this early modern era. In England, for example, an entrepreneur would be directing the whole process of the domestic wool industry in England, and the labor, the spinners and cottage workers, did not own the capital or the goods, they were merely paid for their work. This is an even bigger advancement than the idea of loans with interest and returns, because this idea actually began to shape a fundamental change in the economy, whereas at this point, loans and interest were for the few mega-financers of the time. (Palmer 111)