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At the beginning of the 17th century, England and Wales contained more than four million people. The population had nearly doubled over the previous century, and it continued to grow for another 50 years. The heaviest concentrations of population were in the southeast and along the coasts. Population increase created severe social and economic problems, not the least of which was a long-term price inflation. English society was predominantly rural, with as much as 85 percent of its people living on the land. About 800 small market towns of several hundred inhabitants facilitated local exchange, and, in contrast to most of western Europe, there were few large urban areas. Norwich and Bristol were the biggest provincial cities, with populations of around 15,000. Exeter, York, and Newcastle were important regional centres, though they each had about 10,000 inhabitants. Only London could be ranked with the great Continental cities. Its growth had outstripped even the doubling of the general population. By the beginning of the 17th century, it contained more than a quarter of a million people and by the end nearly half a million, most of them poor migrants who flocked to the capital in search of work or charity. London was the centre of government, of overseas trade and finance, and of fashion, taste, and culture. It was ruled by a merchant oligarchy, whose wealth increased tremendously over the course of the century as international trade expanded.

London not only ruled the English mercantile world, but it also dominated the rural economy of the southeast by its insatiable demand for food and clothing. The rural economy was predominately agricultural, with mixed animal and grain husbandry practiced wherever the land allowed. The population increase, however, placed great pressure upon the resources of local communities, and efforts by landlords and tenants to raise productivity for either profit or survival were the key feature of agricultural development. Systematic efforts to grow luxury market crops like wheat, especially in the environs of London, drove many smaller tenants from the land. So too did the practice of enclosure, which allowed for more productive land use by large holders at the expense of their poorer neighbours. There is evidence of a rural subsistence crisis lasting throughout the first two decades of the century. Marginally productive land came under the plow, rural revolts became more common, and harvest failures resulted in starvation rather than hunger, both in London and in the areas remote from the grain-growing lowlands—such as north Wales and the Lake District. It was not until the middle of the century that the rural economy fully recovered and entered a period of sustained growth. A nation that could barely feed itself in 1600 was an exporter of grain by 1700.

In the northeast and southwest the harsher climate and poorer soils were more suited for sheep raising than for large-scale cereal production. The northeast and southwest were the location of the only significant manufacturing activity in England, the woolen cloth industry. Wool was spun into large cloths for export to Holland, where the highly technical finishing processes were performed before it was sold commercially. Because spinning and weaving provided employment for thousands of families, the downturn of the cloth trade at the beginning of the 17th century compounded the economic problems brought about by population increase. This situation worsened considerably after the opening of the Thirty Years’ War (1618–48), as trade routes became disrupted and as new and cheaper sources of wool were developed. But the transformation of the English mercantile economy from its previous dependence upon a single commodity into a diversified entrepôt that transshipped dozens of domestic and colonial products was one of the most significant developments of the century.

The economic divide between rich and poor, between surplus and subsistence producers, was a principal determinant of rank and status. English society was organized hierarchically with a tightly defined ascending order of privileges and responsibilities. This hierarchy was as apparent in the family as it was in the state. In the family, as elsewhere, male domination was the rule; husbands ruled their wives, masters their servants, parents their children. But if hierarchy was stratified, it was not ossified; those who attained wealth could achieve status. The social hierarchy reflected gradations of wealth and responded to changes in the economic fortunes of individuals. In this sense it was more open than most European societies. Old wealth was not preferred to new, and an ancient title conferred no greater privileges than recent elevation; the humble could rise to become gentle, and the gentle could fall to become humble.

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