Since the 1950s, interpreters of John Locke have debated whether his ideas about political economy figured among the intellectual sources of capitalist development. While some have labeled Locke a mercantile or agrarian “capitalist thinker,” others have insisted that, although a mercantilist, he was in no sense a theorist of capitalism. By reconstructing the relationship between Locke's ideas and the capitalist society of his day, this article challenges the prevailing terms through which commentators have traditionally interpreted his political economy and its place in the history of capitalism. I interpret Locke's perspectives on capital accumulation, foreign trade, and labor discipline throughout the 1690s as a reflection of the historical rise of export-oriented cycles of commodity manufacturing in the English countryside known as “proto-industrialization.” Moreover, I claim that, because proto-industrialization was tied to the expansion of England's colonial economy, this neglected context of Locke's economic doctrine sheds new light on his vision of empire. Looking to his writings on Ireland, I argue that Locke pursued proto-industrial economic reform by combining a hierarchical, stadial theory of progress with an imperial policy aimed at “improving” the colonies through decreed patterns of production and exchange that favored metropolitan trade.