The Rise of Capitalism 

by L. G. Salingar

Here a third social factor needs to be considered. Though most of Elizabeth's five million subjects were country‑dwellers, their prosperity depended on foreign trade; and all the main events of the reign were connected with the rise of merchant capital - the long duel with Spain, ranging from Ireland to the Indies; the raids on Spanish treasure; the sudden expansion of English trade to touch all four of the known continents. Shakespeare's interest in the sea reflects the outlook of an increasingly mercantile society. Moreover, Shakespeare's lifetime has been described as the period of most rapid advance in mining and manufacture that England was to know until the late eighteenth century. "The realm aboundeth in riches, as may be seen by the general excess of the people in purchasing, in buildings, in meat, drink, and feastings, and most notably in apparel." This statement of 1579 implies new industries and technical knowledge, a rising standard of living for many, a thriving atmosphere in which the newly built theatres could prosper.

This rise of capitalism affected society in two contrasting ways. It strengthened the monarchy, especially against Catholicism; and by such means as the Puritan sermon, the printing‑press, the commercial playhouse, it helped knit together a new national consciousness. The culture that reached maturity towards 1580 with Spenser and Sidney, the immediate forerunners of the great dramatists, amalgamated the varied elements of the nation's life more closely than the culture of any other generation since Chaucer.

On the other hand, capitalism, in a century of steeply rising prices, brought about radical changes in the composition of society. Spending habits of "excess" upset the customary standards founded on old routines of farming the soil. And a new spirit of competition loosened the whole social hierarchy. After 1600 the popular elements in literature were submerged by those aristocratic and bourgeois ideals that the Elizabethans summed up together as "civility". And at the same time the rule of the Stuarts brought a division within the governing classes that ultimately led to the Civil War. In social life, in thought, and in literature the period about 1600 marks a turning‑point in English history.

from  L.G.Salingar, in "The Penguin Guide to English Literature" (1969), pp 17‑18