Christopher R.

Friedrichs in his Business History Review studies the

reasons for emergence of capitalism and factors, that contributed to its
prosperity or suspended it. Capitalism is shown as an inevitable and
devastating process for craftsmen, who have been forcibly turned into wage-
labourers, and as a phenomenon giving great opportunities to those, who
have been capable of adjusting to the new economic system.

In this review monopolization has been analized with the help of a small
German town of the 17th century – Nordlingen. On one hand, there is a
leading merchant family – the Worners, who hold in their hands a significant
amount of capital, which allows them to control the entire indusrty and
regulate prices at which they buy final goods, - and on the other hand, there
are weavers, who are so indebted, that soon seem to turn into «slaves and
surfs of the Worners». In my opinion, such division took place due to the
fact, that middlemen in the town lacked in capital, with which they could
provide the weavers. Therefore, from the very beginning the Worners did not
have any rivals. However, rights of the artisans were temporarily restored by
virtue of the counsel, that still favoured «communal and group needs over
individual success». Few years had passed, when a new entrepreneur,
Troeltsch, entered the market. His approach was a little bit different from the
one of his predecessor. Instead of alienating authority, he headed it, thereby
gaining a powerful political position and ultimate contol over town's
economy.

Thus, Christopher R. Friedrichs shows how cruel capitalism may be for

ordinary workers and proves the only institution, that can regulate
monopolies and protect people from them, to be government.