Forum Post: The Birth of Capitalism

Before about 600 years ago most if not all the capital belonged to feudal lords. It consisted primarily of land and the structures on it. That is: real estate. Mostly in the past 500 years trade, manufacturing and mercantilism began to gain a portion of the economic wealth previously monopolized by feudal royalty. The feudal lords reacted to this. They invented capitalism to maintain their political power and economic wealth, by "investing" in the new players businesses. Banks were owned and controlled by royalty. Their spiritual if not genetic heirs are still in control today.