Final answer:
The Dutch became wealthy from trade and banking due to strategic location, advanced seafaring capabilities, the establishment of the Dutch East India Company, and expansion into the Americas. Their influence in global trade and colonial activities, underpinned by mercantilism, led to an affluent Dutch society, propelling them into an era now known as the Dutch Golden Age.
Step-by-step explanation:
The Rise of Dutch Wealth from Trade and Banking
The cause of the Dutch becoming wealthy from trade and banking lies in the convergence of several factors during the 16th and 17th centuries. The Netherlands, with its strategic location, advanced seafaring and mapmaking skills, became a critical hub in global trade. After declaring independence from Spanish rule, the Dutch East India Company (DEIC) was established, becoming the world's first multinational corporation, and the Netherlands emerged as an economic powerhouse.
The Dutch Golden Age was characterized by significant wealth not only amongst the elite but also within the burgeoning middle class. Success stories from Amsterdam and Antwerp, cities enriched by the influx of exotic goods and spices through Portuguese trade routes, highlight the transformation of Europe's economic centers. Moreover, the Dutch became primary shippers of key commodities like spices, slaves, and sugar, expanding their influence and amassing wealth.
Colonial activities, spearheaded by the Dutch in the Americas with the founding of New Amsterdam (now New York City), enriched the nation even further. In addition to the spice trade, the fur trade in the colony of New Netherlands offered another lucrative income source, while promises of religious toleration attracted immigrants, bolstering the economy.
The adept usage of mercantilism – focusing on exporting more than importing – fortified Dutch economic dominance during this time. By establishing trade agreements with diverse global partners and applying superior naval strength, the Netherlands secured its position as a significant trade center and naval power.