ECONOMIc Crisis
Primary Source“With matters as they are, ordinary ways being unable to lead us to our goal…the only means of managing finally to put our finances truly in order, must consist of revitalizing the entire state by reforming all that is defective.”
-Charles Alexandre de Calonne (King’s financial advisor) |
Secondary sourceFrance is operating under an “old system” or ancien régime, which divides the nation into three classes. The upper class holds all of the wealth and power, while the lower class, or bourgeoisie, starved to death. The nobles, and Louis XIV have driven the nation deeply into debt, and all attempts at economic reform have failed. (Ellis, Esler, and Beers)
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Analysis
King Louis XVI drove the nation into an incredibly unstable state, and left the portion of the country unable to purchase something as simple as bread. Many people starved to death, or were forced to support a family on a paycheck that was barely enough for a single person. This economic deficit resulted from numerous scenarios. This is illustrated in estates' financial issues, in relation to the economic crisis. Firstly, the third estate, consisted of peasants. This was the only estate that was supporting the heavy taxation of France. Due to the increasing taxes on the lower class, these citizens' debts began to steadily increase, while the second and first estates' wealth increased. Unfortunately, attempts to reform this unjust system, along with debt relief ideas during the estates' general meeting was unsuccessful. Despite the third estate consisting of the largest population, it was granted less votes than the second and first estates, resulting in these estates to almost always out rule the third estate's vote. As a result, the financial state of the third estate would remain in it's constant negative condition.
Next, King Louis XVI and his financial advisors, made questionable financial decisions. This can be seen in France's prolonged involvement in the Seven Year's War of 1756-1763, which helped in draining the French treasury. Also, France's decision to participate in the American Revolution only helped in increasing France's debt, as did Marie Antoinette's exuberant expenditure on personal items! Marie Antoinette, King Louis XVI's Austrian wife was out of touch with her people. By increasing her own personal expenses, she further enraged the population.
Without a huge change, the situation would have worsened. A revolution was absolutely necessary, so that the country could be saved. The change in government and power allowed France’s slow recovery, and dramatically reduced their debt.
Next, King Louis XVI and his financial advisors, made questionable financial decisions. This can be seen in France's prolonged involvement in the Seven Year's War of 1756-1763, which helped in draining the French treasury. Also, France's decision to participate in the American Revolution only helped in increasing France's debt, as did Marie Antoinette's exuberant expenditure on personal items! Marie Antoinette, King Louis XVI's Austrian wife was out of touch with her people. By increasing her own personal expenses, she further enraged the population.
Without a huge change, the situation would have worsened. A revolution was absolutely necessary, so that the country could be saved. The change in government and power allowed France’s slow recovery, and dramatically reduced their debt.