The document summarizes the transition from feudalism to capitalism in Western economic systems during the early modern era. As political stability increased, populations grew in cities and towns as serfs escaped manors to take advantage of open markets. Merchants gained more wealth than feudal lords and supported kings, shifting power. Governments adopted mercantilist policies to increase state power domestically and internationally through controlling trade and granting trading monopolies. Increased trade with colonies provided raw materials and wealth, fueling the rise of joint-stock companies and criticism of restrictions by Adam Smith who advocated for free markets and laissez-faire policies.