Though the condition of the peasantry was very prosperous and agricultural methods had improved, the increase of large properties, due to the investment in land of the money acquired by trade and industry, favoured the development of a large class of agricultural labourers, whose situation contrasted unfavourably with that of the large tenant and the smaller farmer.
In every branch of economic activity, modern methods rapidly supplanted mediæval conditions. From the general point of view of the country's prosperity, the change was beneficial and the princes showed wisdom in supporting it. A return to the narrow regulations and guild monopolies of the fourteenth century would have proved as fatal, in the fifteenth, as a return to the feudal system in the thirteenth. The princes supported the rich merchants and employers in the Renaissance, as they supported the Communes in the twelfth century. The corporation system, which had proved a boon at that time, had become an obstacle to free activity and initiative and had therefore to be sacrificed. But, at the same time, the formation of a large class of unorganized rural workers, who had no means of defending themselves against the ruthless exploitation of their employers, was bound to prove a cause of social unrest. It was among these uneducated masses that the Anabaptists recruited most of their followers, and the industrial population around Hondschoote and Armentières provided the first bands of iconoclasts whose excesses contributed so much to confuse the issue of the revolution against Spain. Modern monarchy, which had upheld the new order of things, became the scapegoat of the discontented, and the suffering and exasperated people were no longer able to distinguish between the evil brought about by unrestrained capitalism and the good resulting from the organization of a strongly centralized State.