ResoluteReader: Greg Steinmetz - The Richest Man Who Ever Lived: The life and times of Jacob Fugger

Friday, April 04, 2025

Greg Steinmetz - The Richest Man Who Ever Lived: The life and times of Jacob Fugger

In 1526, the Tyrolean radical Michael Gaismair, wrote a remarkable document known as The Landesordnung. In it, he outlined how a radicaly democratic society could function, based on social justice, religious freedom, equality and, through curbing the actions of the rich and powerful. In it, he demanded that the mines, an important part of the Austrian economy, be bought under democratic control and taken off the likes the Fugger bankers. They, and their kin, had

forfeited their right to them for they [bought] them with money acquired by unjust usury in order to shed human blood. Thus also they deceived the common man and worker by paying his wages in defective goods…raised the price of spices and other products by buying up and hoarding stocks. They are to blame for the devaluation of the coinage, and the mints have to pay their inflated price for silver. They have made the poor pay for it, their wages have been lowered in order that the smelters can make some profit after buying the ore. They have raised the prices of all consumer goods after they gained a monopoly, and thus burdened the whole world with their unchristian usury.

Sadly this quote doesn't appear in Greg Steinmetz' account of the life and times of Jacob Fugger. But having read it, one can certainly sympathise with Gaismair and the rebellious peasants and miners who flocked to his call. Fugger was indeed one of the richest men ever to have lived, and as Steinmetz's account makes clear Fugger was uniquely for his time, adept at seeing business opportunities and using his existing wealth and power to get further wealth and power. He counted among his clients kings, monarchs and popes, and he played politics like a giant game of chess across Europe all in order to further his own ambitions.

Unfortunately Steinmetz's book suffers from superficial analysis and simplistic comment. Writing of the great German radical Thomas Müntzer, Steinmetz says that he "was the most dangerous to Fugger. It was not because he had the most guns but because his populist agenda held enormous appeal". Müntzer did indeed rail against "the profiteering evildoers", but then so did many others. Müntzer was a threat because his brand of radicalism was linking up with a mass movement - not because he was uniquely radical. The revolutionary movement of 1525 was, after all, a massive challenge to all the powerful and weathly.

Steinmetz charts Fugger's rise to power, and in particular highlighting the way he was able to extract wealth from labourers and use that to strengthen his hand. It is notable, and Marxists might appreciate knowning it, that the world's first capitalists and bankers were as ruthless as others. Despite the lack of serious competitors, Fugger seems personally driven to accumulate wealth for the sake of it. Even Steinmetz who is clearly sympathetic to the banker's lot is forced to acknowledge that Fugger's methods were devious and nasty. In the case of the repression of the peasantry and their allies, Steinmetz notes that Fugger "sponsored" "savagery".

Despite these insights, Steinmetz tends to give Fugger far more credit than he is due. He is portrayed as the figure who personally drives forward key moments in central European history. Steinmetz doesn't appear to be engaging in hyperbole when he improbably claims, that Fugger

roused commerce from its medieval slumber by persuading the pope to life the ban on moneylending. He helped save free enterprise from an early grave by financing the army that won the German Peasants; War, the first great clash between capitalism and communism. He broke the back of the Hanseatic League... He engineered a shady financial scheme that unitnetniotnally provoked Luther to write his Ninety-Five Theses... he most likely funded Magellan's circumnavigation of the globe.

Like Brecht, we might wonder who else built Thebes of the Seven Gates? The problem is that this account fails to acknowledge the very real changes taking place within the economic base of European society in the early 16th century. The changes that were driving all sorts of economic, political and theological changes and opening up a space for others. By placing these changes in the hands of one individual (to be fair Steinmetz does say "helped") the authors is simply engaging in that favourite bourgeois fantasy of the individual discontected from society and the wider world.

Tragically there are no modern biographies of Jacob Fugger, and Steinmetz has at least written one that covers the key moments of Fugger's life. Sadly its not without fault. It also has some annoying mistakes. Fugger claims that Müntzer was finally defeated in battle at Mühlhausen "a small city Müntzer gad seuzed and sought to run as a communist utopia". But this is wrong. The battle took place at Frankenhausen, and is today marked by a significant museum.

Greg Steinmetz's biography of Fugger will likely have a renewed readership as a result of the anniversary of the Peasants' War. It is perhaps most charitable to say that it is the sort of biography you would expect "a securities analyst for a money management firm in New York" to write, and use it as a jumping off point for more serious studies elsewhere.