<span>A political cause was the strengthening of modern European monarchies, since the crusades had weakened the great feudal lords, many had died and others fell into poverty, given the continuous failures to seize lands in the East.</span>
Capitalism is defined as a system in which all the profit made out of trading should go to private business owners. Trade was all time high during renaissance and trade is the focal point of renaissance, Renaissance gave birth to the philosophy of capitalism. It also gave way to the economic system of capitalism.
The main reason why it is important to maintain a balance between state and national authority in a federal system is so the federal government does not become too powerful and subsequently tyrannical. By ensuring that the states maintain a great deal of power this is far more unlikely to happen.