France's financial crisis
- Created by: caitlyn.hole
- Created on: 19-06-17 09:23
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- Financial Crisis 1783 - 1788
- Power abuses & unfair taxation
- French nobility did not pay taxes
- Peasants paid majority of taxes
- First Estate were exempt
- Second Estate paid only 5% of income in taxes
- Meant that common people hated aristrocracy
- Taxes obtained through tax farming so government didn't have enough to cover expenditure
- Collected by people who bought their position through venality so couldn't be dismissed
- Charles de Calonne, a.k.a. Monsieur Deficit
- Appointed as Finance Minister in 1783
- In 1786 France approached European banks for a loan
- Worried about unrest if taxed peasants further
- Didn't want to tax nobility in case they lost their support
- France had no credibilty
- Independent accountants put in charge of acquisition/ distribution of government funds
- Corruption - many used funds for personal use
- Made tracking transactions difficult
- French monarchy
- Believed in divine right - led to absolute rule
- Lived an extravagant lifestyle
- Antoinette had 300 dresses made each year
- Louis ate lots of extravagant food daily - e.g. three roasts
- Parlements
- Would never agree to taxation on all
- There was no universal law - laws varied by region and were enforced by local parlements, guilds or religious groups
- Had to approve royal decrees
- King was virtually powerless to do anything that would have a negative effect on a regional government
- Debt problems
- Seven Years War 1756 - 63 & American War of Independence 1775 - 83 drained the treasury
- Had to maintain army and navy
- American War of Independence cost 1066 million livres
- Seven Years War 1756 - 63 & American War of Independence 1775 - 83 drained the treasury
- Power abuses & unfair taxation
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