This is the story of one of the sons of Augsburg city in German and the origin of capitalism as we know it nowadays. This priest was extremely rich. He was one of the founders of Augsburg city in German which was renowned worldwide for its wealth and financial strength.
The city was known to have inexhaustible wealth which impressed even Martin Luther. Jacob Fugger was so rich to the extent that he received respect from the ruling class and he always advocated for non-interference from the ruling. This was a radical idea during those times.
In 1505, Jacob Fugger started sponsoring explorers. The first exploration was to our city Mombasa in Kenya. The Portuguese explorers returned to their home country with ships loaded with peppers which were sold at 300% profit.
Jacob Fugger used his influence to persuade Pope Leo X of the Medici family to legalize making of profit-making.
Writers who have analyzed his operations have pointed out that Jacob Fugger presented a self-assured and cool image which made it easier for him to work with imperial rulers and bear huge debts. He had the capacity to bubble confidence even when he was in financial turmoil.
Jacob Fugger had a thirsty for action/activity. He would not scale down his activities even when his health was failing. He was after profit till the end of his life.
Main economic projects initiated by Jacob Fugger:
- Mining in Tyrol in 1493;
- Mining copper and silver in Hungary and Bohemia;
- Mining of cinnabar and quicksilver in Almaden in 1525;
- In 1487 Jacob Fugger headed the monopolistic operations in the European copper market;
- Trade expeditions to India as well as failed Spanish trade travels to Maluku Islands;
- Sponsored the election of Charles V of Spain to become the Holy Roman Emperor;
- Funded the construction of a chapels in 1509 to 1512;
- Founded the oldest social housing buildings in 1521 and they are still in use;
- Jacob Fugger provided finances for recruitment of Swiss Guard who provide security at the Vatican in Rome – 1505 and 1506;
- He was awarded a contract to produce 66 different types of coins for 4 different popes;
- As a leading European Banker, Jacob was involved in the sale of indulgences;
- Spice trade in 1503 by opening factory in Lisbon;
- Traded in pepper and luxury products such as gemstones and pearls;
- He paid for 22 Portuguese ships to travel to India an expedition led by Francisco de Almeida;
Jacob Fugger died on 30 December 1525 and his assets were inherited by his nephew Anton Fugger. He remains one of the most well-known Germans and specifically from Augsburg City- the origin of capitalism as we know it today.
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