Italy during the late Middle Ages was a mix of fortune and misfortune, with the North being wealthier than the impoverished South. The rise of the Merchant Class in Northern Italy marked a shift from feudal aristocracy to a mercantile economy, fostering trade and weakening noble power. This period saw internal conflicts among city-states like Venice, Florence, and Milan, and external pressures from the Papal States and the Holy Roman Empire. The early Renaissance emerged from this backdrop, spurred by economic shifts and the recovery from disasters like the Black Death, which led to a labor shortage, higher wages, and a burgeoning market for goods and services.