Im 15. Jahrhundert begann sich in Innsbruck eine erste frühe Form der Industrialisierung zu entwickeln. Die Metallverarbeitung florierte unter der aufsteigenden Bauwirtschaft in der boomenden Residenzstadt und der Herstellung von Waffen und Rüstungen. Viele Faktoren trafen dafür zusammen. Die verkehrsgünstige Lage der Stadt, die Verfügbarkeit von Wasserkraft, Innsbrucks politischer Aufstieg, das Knowhow der Handwerker und die Verfügbarkeit von Kapital unter Maximilian ermöglichten den Aufbau von Infrastruktur. Glocken- und Waffengießer wie die Löfflers errichteten in Hötting, Mühlau und Dreiheiligen Betriebe, die zu den führenden Werken Europas ihrer Zeit gehörten. Entlang des Sillkanals nutzten Mühlen und Betriebe die Wasserkraft zur Energiegewinnung. Pulverstampfer und Silberschmelzen hatten sich in der Silbergasse, der heutigen Universitätsstraße, angesiedelt. In der heutigen Adamgasse gab es eine Munitionsfabrik, die 1636 explodierte.

Metalworking also boosted other sectors of the economy. At the beginning of the 17th century, there were 270 businesses in Innsbruck, employing master craftsmen, journeymen and apprentices. Although the majority of Innsbruckers were still employed in administration, trade, crafts and the money that could be earned from them attracted a new class of people. There was a reshuffling within the city. Citizens and businesses were pushed out of the new town by the civil service and the nobility. Most of the baroque palazzi that adorn Maria-Theresienstraße today were built in the 17th century, while Dreiheiligen and St. Nikolaus became Innsbruck's industrial and working-class districts. In addition to the metalworking industry around Silbergasse, tanners, carpenters, wainwrights, master builders, stonemasons and other craftsmen of early industrialisation also settled here.

Industry not only changed the rules of the social game with the influx of new workers and their families, it also had an impact on the appearance of Innsbruck. Unlike the farmers, the labourers were not the subjects of any master. Although entrepreneurs were not of noble blood, they often had more capital at their disposal than the aristocracy. The old hierarchies still existed, but were beginning to become at least somewhat fragile. The new citizens brought with them new fashions and dressed differently. Capital from outside came into the city. Houses and churches were built for the newly arrived subjects. The large workshops changed the smell and sound of the city. The smelting works were loud, the smoke from the furnaces polluted the air. Innsbruck had gone from being a small settlement on the Inn bridge to a proto-industrial town.

Growth was slowed for several decades at the end of the 18th century by the Napoleonic Wars. The second wave of industrialisation came late in Innsbruck compared to other European regions. One reason for this was the late establishment of a functioning banking system in the city. Catholics still regarded bankers as „usurers and borrower“ and doing business with money was considered indecent. Without financing, however, even large enterprises could not be founded. In 1715, the Tyrolean provincial government had issued the so-called Banko gegründet und in der Herzog-Friedrich-Straße gab es die Privatbank Bederunger, erst mit der Gründung der ersten Filiale der Sparkasse wurde es möglich, sein Geld nicht mehr unter dem Kopfpolster zu verwahren. Nach 1850 begann man Kredite zu vergeben, was die Gründung heimischer größerer Betriebe ermöglichte. Das Small craftThe town's former craft businesses, which were organised in guilds, came under pressure from the achievements of modern goods production. In St. Nikolaus, Wilten, Mühlau and Pradl, modern factories were built along the Mühlbach stream and the Sill Canal. Many innovative company founders came from outside Innsbruck. Peter Walde, who moved to Innsbruck from Lusatia, founded his company in 1777 in what is now Innstrasse 23, producing products made from fat, such as tallow candles and soaps. Eight generations later, Walde is still one of the oldest family businesses in Austria. Today you can buy the result of centuries of tradition in soap and candle form in the listed main building with its Gothic vaults. Franz Josef Adam came from the Vinschgau Valley to found the city's largest brewery to date in a former aristocratic residence. In 1838, the spinning machine arrived via the Dornbirn company Herrburger & Rhomberg over the Arlberg to Pradl. H&R had acquired a plot of land on the Sillgründe. Thanks to the river's water power, the site was ideal for the heavy machinery used in the textile industry. In addition to the traditional sheep's wool, cotton was now also processed. 

Just like 400 years earlier, the Second Industrial Revolution changed the city and the everyday lives of its inhabitants forever. Neighbourhoods such as Mühlau, Pradl and Wilten grew rapidly. The factories were often located in the centre of residential areas. Over 20 businesses were still using the Sill Canal around 1900. The Haidmühle The power plant in Salurnerstraße existed from 1315 to 1907 and supplied a textile factory in Dreiheiligenstraße with energy from the Sill Canal. The noise and exhaust fumes from the engines were hell for the neighbours, as a newspaper article from 1912 shows:

„Entrüstung ruft bei den Bewohnern des nächst dem Hauptbahnhofe gelegenen Stadtteiles der seit einiger Zeit in der hibler´schen Feigenkaffeefabrik aufgestellte Explosionsmotor hervor. Der Lärm, welchen diese Maschine fast den ganzen Tag ununterbrochen verbreitet, stört die ganz Umgebung in der empfindlichsten Weise und muß die umliegenden Wohnungen entwerten. In den am Bahnhofplatze liegenden Hotels sind die früher so gesuchten und beliebten Gartenzimmer kaum mehr zu vermieten. Noch schlimmer als der ruhestörende Lärm aber ist der Qualm und Gestank der neuen Maschine…“

Aristokraten, die sich zu lange auf ihrem Geburtsverdienst auf der faulen Haut ausruhten, während sich die wirtschaftlichen und gesellschaftlichen Spielregeln änderten, mussten ihre Anwesen an den neuen Geldadel verkaufen. Im Palais Sarnthein gegenüber der Triumphpforte, 1689 von Johann Anton Gumpp für David Graf Sarnthein noch als barocker Ansitz geplant, zog die Waffenfabrik und das Geschäft von Johann Peterlongo ein. Geschickte Mitglieder des Adelsstandes nutzten ihre Voraussetzungen und investierten Familienbesitz und Erträge aus der bäuerlichen Grundentlastung von 1848 in Industrie und Wirtschaft. Der steigende Arbeitskräftebedarf wurde von ehemaligen Knechten und Landwirten ohne Land gedeckt. Während sich die neue vermögende Unternehmerklasse Villen in Wilten, Pradl und dem Saggen bauen ließ und mittlere Angestellte in Wohnhäusern in denselben Vierteln wohnten, waren die Arbeiter in Arbeiterwohnheimen und Massenunterkünften untergebracht. Die einen sorgten in Betrieben wie dem Gaswerk, dem Steinbruch oder in einer der Fabriken für den Wohlstand, während ihn die anderen konsumierten. Schichten von 12 Stunden in engen, lauten und rußigen Bedingungen forderten den Arbeitern alles ab. Zu einem Verbot der Kinderarbeit kam es erst ab den 1840er Jahren. Frauen verdienten nur einen Bruchteil dessen, was Männer bekamen. Die Arbeiter wohnten oft in von ihren Arbeitgebern errichteten Mietskasernen und waren ihnen mangels eines Arbeitsrechtes auf Gedeih und Verderb ausgeliefert. Es gab weder Sozial- noch Arbeitslosenversicherungen. Wer nicht arbeiten konnte, war auf die Wohlfahrtseinrichtungen seines Heimatortes angewiesen. Angemerkt sei, dass sich dieser für uns furchterregende Alltag der Arbeiter nicht von den Arbeitsbedingungen in den Dörfern unterschied, sondern sich daraus entwickelte. Auch in der Landwirtschaft waren Kinderarbeit, Ungleichheit und prekäre Arbeitsverhältnisse die Regel.

However, industrialisation did not only affect everyday material life. Innsbruck experienced the kind of gentrification that can be observed today in trendy urban neighbourhoods such as Prenzlauer Berg in Berlin. The change from the rural life of the village to the city involved more than just a change of location. In one of his texts, the Innsbruck writer Josef Leitgeb tells us how people experienced the urbanisation of what was once a rural area: 

„…viel fremdes, billig gekleidetes Volk, in wachsenden Wohnblocks zusammengedrängt, morgens, mittags und abends die Straßen füllend, wenn es zur Arbeit ging oder von ihr kam, aus Werkstätten, Läden, Fabriken, vom Bahndienst, die Gesichter oft blaß und vorzeitig alternd, in Haltung, Sprache und Kleidung nichts Persönliches mehr, sondern ein Allgemeines, massenhaft Wiederholtes und Wiederholbares: städtischer Arbeitsmensch. Bahnhof und Gaswerk erschienen als Kern dieser neuen, unsäglich fremden Landschaft.“

For many Innsbruck residents, the revolutionary year of 1848 and the new economic circumstances led to bourgeoisie. There were always stories of people who rose through the ranks with hard work, luck, talent and a little financial start-up aid. Well-known Innsbruck examples outside the hotel and catering industry that still exist today are the Tyrolean stained glass business, the Hörtnagl grocery store and the Walde soap factory. Successful entrepreneurs took over the former role of the aristocratic landlords. Together with the numerous academics, they formed a new class that also gained more and more political influence. Beda Weber wrote in 1851: „Their social circles are without constraint, and there is a distinctly metropolitan flavour that is not so easy to find elsewhere in Tyrol." 

The workers also became bourgeois. While the landlord in the countryside was still master of the private lives of his farmhands and maidservants and was able to determine their lifestyle up to and including sexuality via the release for marriage, the labourers were now at least somewhat freer individually. They were poorly paid, but at least they now received their own wages instead of board and lodging and were able to organise their private affairs for themselves without the landlord's guardianship. 

The downside of this newfound self-determination was particularly evident in the first decades of industrialisation. There was hardly any state infrastructure for health and family care. Health care, pensions, old people's homes and kindergartens had not yet been invented, and in many cases the extended farming family had taken over these tasks until then. In the working-class neighbourhoods, unsupervised children romped around during the day: the youngest children, who were not yet subject to compulsory schooling, were particularly affected. In 1834, following an appeal by the Tyrolean provincial governor, a women's association was founded, which Child detention centres in the working-class neighbourhoods of St. Nikolaus, Dreiheiligen and Angerzell, now Museumstraße. The aim was not only to keep the children off the streets and provide them with clothing and food, but also to teach them manners, proper expression and virtuous behaviour. With a strict hand for "cleanliness, order and obedience", the wardens ensured that the children received at least a minimum level of care. The former Preservation centre in Paul-Hofhaimer-Gasse behind the Ferdinandeum still exists today. The classicist building now houses the Caritas integration kindergarten and a company kindergarten run by the state of Tyrol. 

Innsbruck is not a traditional working-class city. Nevertheless, Tyrol never saw the formation of a significant labour movement as in Vienna. Innsbruck has always been predominantly a commercial and university city. Although there were social democrats and a handful of communists, the number of workers was always too small to really make a difference. May Day marches are only attended by the majority of people for cheap schnitzel and free beer. There are hardly any other memorials to industrialisation and the achievements of the working class. In St.-Nikolaus-Gasse and in many tenement houses in Wilten and Pradl, a few houses have been preserved that give an impression of the everyday life of Innsbruck's working class. 

Maximilian ranks among the most significant figures not only in the history of Innsbruck, but in European history as a whole. Of this mountainous land he is said to have remarked: “Tyrol is a coarse peasant’s coat, but one that keeps you warm.” There were many reasons for this special affection. His father, Frederick III, had been born in Innsbruck in 1415, before the city became a princely residence. Like many of his peers in the high aristocracy, Maximilian was an enthusiastic hunter, and the city’s location amid floodplains, forests, and mountains is said to have exerted on him a particular appeal—much as it still does today on German students. Despite these convincing “soft facts,” it was probably more tangible reasons that led him to conduct a considerable part of his governmental business from Innsbruck. In 1490, at the request of the Estates of the Land, he assumed the government of Tyrol from his predecessor Sigismund. The powerful Habsburg was unwilling to relinquish the important assets the region had to offer from the Habsburg portfolio. Maximilian transformed the former trading settlement on the Inn into one of the most important centers of the Holy Roman Empire, thereby permanently shaping its destiny. Innsbruck’s strategically advantageous location close to the Italian theaters of war also made the city highly attractive to the Emperor. Many Tyroleans were compelled to enforce the imperial will on the battlefield instead of tending their own fields. This changed only toward the end of his reign. In 1511, Maximilian granted the Tyroleans the Tyrolean Landlibell, a kind of constitution, which stipulated that they could only be called upon for military service in defense of their own land. What admirers of Maximilian—who like to regard the document as a charter of liberty—often overlook are the associated obligations, such as the levying of special taxes in the event of war. For Innsbruck the arrangement paid off in any case—if not financially, then at least culturally. “Whoever does not create a memory for himself in life will have no memory after death, and such a person will be forgotten with the peal of the bell.” Maximilian countered this fear quite successfully and deliberately through the erection of highly visible symbols of imperial power, such as the Golden Roof. Propaganda, imagery, and media played an increasingly important role, not least due to the emergence of printing. Maximilian made deliberate use of art and culture to maintain his presence. He kept a Reich Chapel Choir, a musical ensemble that performed primarily at public appearances and receptions of international envoys. A veritable cult of personality was staged around him through coins, books, printed works, and paintings.

For all the romance cultivated by this lover of courtly traditions and classical chivalry, Maximilian was a cool-headed power politician. His cultural policy and propaganda may have drawn on medieval models, but in realpolitik terms he was forward-looking. During his reign, political institutions such as the Imperial Diet (Reichstag), the Imperial Aulic Council (Reichshofrat), and the Imperial Chamber Court (Reichskammergericht) emerged, strictly regulating the relationship between subjects, territorial lords, and monarchy. Around 1500, Tyrol had approximately 300,000 inhabitants. More than 80 percent worked in agriculture and lived largely from the yields of their farms. In a veritable frenzy of new legislation, Maximilian curtailed peasant rights to the commons. Timber harvesting, hunting, and fishing were subordinated to the territorial lord and were no longer communal rights. This had negative effects on peasant self-sufficiency. Thanks to the new laws, hunters became poachers. Meat and fish, long staples of the medieval diet, became luxuries that could often only be obtained illegally. As a result, Maximilian was unpopular among large segments of the population during his lifetime.

Restrictions on self-sufficiency were joined by new taxes. It had always been customary for sovereigns to impose additional taxes on the population in the event of war. Maximilian's warfare differed from medieval conflicts. The auxiliary troops and their noble, chivalrous landlords were supplemented or completely replaced by mercenaries who knew how to use modern firearms.

This new way of waging war consumed enormous sums. When revenues from princely rights—such as minting, market, mining, and customs monopolies—were no longer sufficient, various population groups were taxed according to their estate and wealth. The system, however, was still far removed from today’s differentiated taxation models and consequently produced injustice and resentment. One example was Maximilian’s Gemeiner Pfennig. This wealth tax ranged from 0.1 to 0.5 percent of assets but was capped at one gulden. Jews, irrespective of their wealth, were required to pay a poll tax of one gulden. For the first time, princes were also obliged to contribute, but due to the cap they paid no more than a middle-class Jew. The proclamation and execution of the tax fell to prelates, parish priests, and secular lords. Priests were required to announce the tax from the pulpit on three successive Sundays, collect contributions together with court representatives, and enter them into the imperial tax register. It soon became clear that this method of taxation was unworkable. A modern system and tax model were required. A collegial chamber, the Regiment, centrally supervised Tyrol and Further Austria following the modern model of Burgundian financial administration that Maximilian had encountered during his time in the Netherlands. Innsbruck became the financial and accounting center of the Austrian lands. The Audit Chamber (Raitkammer) and the Privy Treasury (Hauskammer) were located in the Neuhof, where today the Golden Roof looks down over the old town. In 1496, the financial resources of the Austrian hereditary lands were consolidated in the treasury in Innsbruck. The head of the Court Chamber was the Bishop of Brixen, Melchior von Meckau, who increasingly involved the Fugger family as creditors. Officials such as Jakob Villinger (1480–1529) handled financial transactions with banking houses across Europe using the Italian-influenced method of double-entry bookkeeping and attempted to keep imperial finances under control. Talented minor nobles and citizens, trained jurists, and professional administrators replaced the high nobility in leading roles. Financial experts from Burgundy held the commercial leadership of the Regiment. The boundaries between finance and other fields such as war planning and domestic policy became fluid, granting this new administrative class considerable power. Where once equilibrium between territorial lord, church, landlord, and subject had rested on a balance of contributions and military protection, this system was now enforced through coercion from above. Maximilian argued that it was the duty of every Christian, regardless of estate, to defend the Holy Roman Empire against external enemies. The records surrounding disputes between king, nobility, clergy, peasants, and towns over tax obligations strongly resemble modern political debates on power and wealth distribution. The crucial difference from earlier centuries lay in the fact that the modern administrative apparatus now made it possible to enforce and collect these taxes. Comparisons to mandatory cash registers, the taxation of tips in the hospitality industry, or debates over abolishing cash transactions suggest themselves. Capital followed political significance to Innsbruck as well. During his reign, Maximilian employed 350 councillors. Nearly a quarter of these well-paid officials came from Tyrol. Envoys and politicians from across Europe, extending as far as the Ottoman Empire, as well as nobles, built residences in Innsbruck or stayed in its inns. Much like today’s oil wealth draws specialists of all kinds to Dubai, Schwaz silver and the financial economy it generated once attracted experts of all kinds to Innsbruck—a small city amid the inhospitable Alps.

Under Maximilian’s rule, Innsbruck underwent architectural and infrastructural transformation on an unprecedented scale. In addition to constructing the prestigious Golden Roof, he remodeled the Imperial Palace, began construction of the Court Church, and created the Innsbruck Arsenal, Europe’s leading weapons manufactory. Streets through the old town were reinforced and paved for the refined members of the court. As a pious Christian in the chivalric tradition, the Emperor also aided the poorest members of society. In 1499 he renovated and expanded the Salvator Chapel, a hospital for destitute Innsbruck residents who had no claim to a place in the municipal hospital. In 1509, the inner-city cemetery was relocated from today’s Cathedral Square to behind the municipal hospital, at what is now Adolf-Pichler-Platz. Maximilian rerouted the trade road through present-day Mariahilf and improved the city’s water supply. A fire ordinance for Innsbruck followed in 1510. He also began to curtail the privileges of Wilten Abbey, the largest landowner in what is today the city area. Infrastructure owned by the monastery—such as mills, sawmills, and the Sill Canal—was to come under stronger princely control.

The imperial court and the affluent administrative class resident in Innsbruck transformed the city’s appearance and demeanor. Maximilian had introduced the refined courtly culture of Burgundy to Central Europe through his first wife. Culturally, however, it was above all his second wife, Bianca Maria Sforza, who promoted Innsbruck. Not only was their royal wedding celebrated there, she also resided in the city for long periods, as it lay closer to her native Milan than Maximilian’s other residences. She brought her entire court from the Renaissance metropolis into the German lands north of the Alps. Art and entertainment in all forms flourished.

Under Maximilian, Innsbruck not only became a cultural centre of the empire, the city also boomed economically. Among other things, Innsbruck was the centre of the postal service in the empire. Maximilian was able to build on the expertise of the gunsmiths who had already established themselves in the foundries in Hötting under his predecessor Siegmund. Platers, foundry operators, powder stampers and cutlers settled in Neustadt, St. Nikolaus, Mühlau, Hötting and along the Sill Canal. The Fugger merchant dynasty maintained an office in Innsbruck. In addition to his favoured love of Tyrolean nature, the treasures such as salt from Hall and silver from Schwaz were at least as dear and useful to him. Maximilian financed his lavish court, his election as king by the electors and the eight-year war against the Republic of Venice by mortgaging the country's mineral resources, among other things.

Assessing Maximilian’s impact on Innsbruck is challenging. Expressions of affection by an emperor naturally flatter the popular imagination to this day. His material legacy, with its many monumental buildings, reinforces this positive image. He made Innsbruck an imperial residence and advanced infrastructural modernization. Thanks to the arsenal, the city became a center of the arms industry, the treasury of the Empire, and expanded both economically and spatially. Yet the debts he incurred and the regional assets he pledged to the Fugger family shaped Tyrol after his death just as profoundly as the strict laws he imposed on the common population. He is said to have left debts amounting to five million gulden—an amount his Austrian territories could have earned over twenty years. Outstanding payments ruined many businesses and service providers after his death, leaving them stranded on imperial promises. Early modern rulers were not bound by their predecessors’ liabilities; only agreements with the Fugger family constituted an exception, as these involved collateral rights. In the legends surrounding the Emperor, these harsh realities are far less present than the Golden Roof and the soft facts learned in school. In 2019, celebrations marking the 500th anniversary of the death of what was arguably the most important Habsburg for Innsbruck were held under the slogan “Tyrolean at heart, European in spirit.” The Viennese-born ruler was benevolently naturalized. Salzburg has Mozart; Innsbruck has Maximilian—a Emperor whom Tyroleans have adapted to fit the desired identity of Innsbruck as a rugged character happiest in the mountains. His distinctive face today adorns all manner of consumer goods, from cheese to ski lifts; the Emperor serves as patron for all kinds of the profane. Only for political agendas is he less easily harnessed than Andreas Hofer. For the average citizen, it is probably easier to identify with a revolutionary innkeeper than with an emperor.

There were hardly any uncrowned individuals who exerted a greater influence on European history well into the twentieth century than Jakob Fugger (1459–1525). Fugger came from a merchant family in Augsburg. His birth was recorded in the city’s tax register with the linguistically amusing entry “Fucker advenit,” which—when read today—transcends modern language boundaries. That the little “Fucker” would one day build an unprecedented, globally operating financial empire out of the family business was by no means foreseeable. Following long-standing family tradition, Jakob and his brothers initially traded cotton with the wealthy cities of northern Italy. In the region between Florence, Venice, and Milan, an early form of financial capitalism had emerged. From there, banking began its triumphant advance across Europe in the late Middle Ages. This system soon crossed the Alps; Innsbruck, too, had branches of Italian financial institutions from the High Middle Ages onward. Merchants who did not wish to carry vast amounts of cash required so‑called bills of exchange to conduct their transactions. In the major trading cities, commercial offices modeled on Italian examples were established. In Venice—the center of long-distance trade in the eastern Mediterranean—Jakob Fugger learned the art of double-entry bookkeeping and the subtleties of advanced Italian economic management. He quickly realized that far more profit could be made through financial transactions and lending than through cotton trading.

The financial-political system prevailing at the time, combined with new demands on power politics, formed the framework within which early capitalism could grow. During the Middle Ages, Europe’s monarchs and aristocrats financed their courts and wars through the tithe, a levy paid by peasants within the feudal system. Modern warfare, driven by the introduction of firearms, became increasingly expensive in the fifteenth century, and the tithe was more and more often insufficient to finance armies. Generous contributions from investors in the growing private economy were required, providing funds in exchange for collateral and interest. For centuries it had been sufficient to know that God’s blessing was on one’s side; at the transition to the modern era, the realization emerged that having a powerful house bank was also no disadvantage. The Fugger trading and financial network expanded rapidly in this fertile climate. For their textile business, branch offices were established in Venice, Bolzano, Milan, Nuremberg, Frankfurt, Bruges, and Antwerp. These branches were multifunctional hybrids comprising sales outlets, bank branches, horse stations, warehouses, postal and news offices, and diplomatic representations. Capital and politics did not remain separate for long. Jakob Fugger’s connection with the House of Habsburg—and with Tyrol in particular—began to intensify in 1487. The Tyrolean ruler Archduke Sigismund suffered defeat in a military conflict with the Republic of Venice. To repay his debts to the Mediterranean power, amounting to 100,000 guilders, he borrowed money from the Fuggers. In return, he issued promissory notes secured by pledging the silver mine at Schwaz to his creditors. Prior to the exploitation of the American silver mines, Schwaz was the largest silver mine in the world. The Fuggers sold the Schwaz silver to the mint at Hall, which they themselves also operated, and then lent these newly minted coins back to Duke Sigismund. A cycle of a very special kind was born. This did not mark the end of the Fuggers’ political influence on world affairs; rather, it was only the starting signal. When the Tyrolean estates deposed Sigismund in 1490 because of his disastrous financial management, Maximilian I succeeded him as ruler of Tyrol. Not only did Maximilian’s lifespan coincide with that of Jakob Fugger, but the destinies of the two men were closely intertwined. The history of Tyrol itself was shaped by the most significant financial magnate of his age. Fugger was astute enough to place his trust in the new ruler. The word “credit,” derived from the Latin credere—to believe—finds clear expression in this decision. Fugger believed that a powerful Maximilian was his most valuable asset. In 1493, Fugger financed Maximilian’s election as Emperor of the Holy Roman Empire, thereby securing his influence and elevation to the nobility. Fugger was also the sponsor of the Viennese double marriage—Maximilian’s masterpiece of dynastic marriage policy—through which Hungary became part of the Habsburg realm. When Maximilian died in 1519, Fugger repeated this strategy, using his financial power to ensure the election of Maximilian’s grandson Charles V as emperor. A loan of 540,000 guilders was extended by the Fuggers to the Habsburgs to cover campaign and bribery expenses. In return, Charles V granted Fugger rights to mines in Spain and South America, where enslaved people worked under inhumane conditions to keep this cycle of exploitation and corruption in motion.

Between 1487 and 1525 alone, the Fuggers granted the Habsburgs an estimated two million guilders in loans. One guilder was equivalent to sixty crowns, while a day laborer earned approximately six crowns per day. With this sum, nearly 55,000 people could have been employed daily for an entire year. A significant portion of these debts was repaid through usage rights to Tyrolean assets and increased taxation. It is estimated that at the time of Jakob Fugger’s death, his financial empire handled around 50 percent of Tyrol’s state budget and controlled 10 percent of the assets of the Holy Roman Empire. His officials managed mines in Tyrol, Bohemia, Slovakia, and Spain, financed trading expeditions throughout the entire known world of the time, and funded numerous wars across Europe. To some historians, Jakob Fugger is considered the richest man in world history. The exact extent of his wealth is difficult to translate into modern terms; when the Frankfurter Allgemeine Zeitung attempted such a calculation in 2016, it arrived at a figure of 300 billion US dollars. Like Maximilian I, Jakob Fugger was both a power-driven individual and an educated, devout Catholic. Corruption, exploitation, the financing of wars, and—out of piety and fear of purgatory—the founding of the Fuggerei, the world’s first social housing complex in Augsburg, were not mutually exclusive in his worldview. In Innsbruck, the Palais Fugger‑Taxis as well as a small alley between Maria‑Theresien‑Strasse and Landhausplatz still commemorate the Fugger family.