Louis XVI and the
Financial Crisis in France
Louis XVI's Accession:
· Married to Marie Antoinette, an Austrian princess.
· Inherited an empty treasury due to prolonged wars and an extravagant court.
Financial Burden:
·
Wars, including support for American
independence, added significant debt.
·
France's national debt exceeded 2 billion
livres, with lenders charging 10% interest.
·
A large portion of the state's budget was spent
on interest payments.
·
The government increased taxes but struggled to
cover its expenses.
The Old Regime and
Social Structure
The Estates System:
·
French society was divided into three estates:
·
First Estate: Clergy, who were exempt from taxes
and enjoyed privileges.
·
Second Estate: Nobility, who also enjoyed tax
exemptions and feudal privileges.
·
Third Estate: Commoners, who bore the tax burden
and included peasants, artisans, and the emerging middle class.
·
Peasants, comprising 90% of the population,
owned little land; most was owned by the nobility, the Church, and wealthy
commoners.
·
The Third Estate paid all taxes, including direct
taxes (taille) and indirect taxes on everyday goods.
Feudal Obligations:
·
Peasants were required to perform services for
the lords, including labour in their fields, military service, and road
construction.
·
The Church collected tithes from peasants.
Economic Struggles
and Social Unrest
Population Growth and Food Shortages:
·
France's population grew from 23 million in 1715
to 28 million in 1789.
·
Increased demand for food led to rising prices,
particularly for bread.
·
Wages did not keep pace with the rising cost of
living, widening the gap between rich and poor.
·
Frequent subsistence crises occurred due to poor
harvests caused by drought or hail.
Emergence of the Middle Class:
· A new middle class arose within the Third Estate, gaining wealth through trade and manufacturing.
·
This group included merchants, manufacturers,
lawyers, and officials.
·
They were educated and believed in merit-based
social positions, not privilege by birth.
Influence of
Enlightenment Ideas
Philosophical Influence:
·
Enlightenment thinkers like John Locke, Jean
Jacques Rousseau, and Montesquieu challenged the divine right of kings and
proposed new government models.
·
Locke's "Two Treatises of Government"
refuted absolute monarchy.
·
Rousseau's social contract theory emphasized
government by consent of the governed.
·
Montesquieu advocated for a separation of powers
within government.
·
These ideas influenced the American Revolution
and were discussed widely in France.
Spread of Revolutionary Ideas:
·
Enlightenment ideas spread through salons,
coffee-houses, books, and newspapers.
·
The proposed increase in taxes by Louis XVI
sparked anger and protest against the existing privileges and the old regime.
Summary
France's population growth led to increased demand for food, causing bread prices to rise sharply. Wages remained stagnant, deepening the economic divide between the rich and poor. Frequent food shortages and subsistence crises fueled discontent among the masses.
During this time, an educated and prosperous middle class emerged within the Third Estate. Influenced by Enlightenment philosophers like John Locke, Rousseau, and Montesquieu, they began to challenge the old feudal system and the idea of privileges based on birth. These ideas, advocating for a society based on merit, freedom, and equality, spread through salons and coffee-houses, leading to widespread anger and protest against the monarchy's plans to impose further taxes. This growing discontent set the stage for the French Revolution.
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