Phillip II Finance 1556-98

  • Created by: _bella_
  • Created on: 16-01-19 18:30
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  • Phillip II Economy + Finance 1556-98
    • Agricultural problems
      • Land of limited fertility+ poor harvest
      • Most workers didn't have enough land to sustain their families
      • Castile had to rely on grain import= higher bread prices
    • Forms of Revenue
      • Bribery, selling crown crown lands + Juros
      • Led to corruption + political weakness
      • Raised tax + Cortes gave him regular subsidies + introduced new customs duties
      • Tax from church provided 20% of royal income
    • Expenditure
      • Lavish spending + not prepared to scale back military ops.
      • America brings a lot of income through bullion + tax regulated by Casa decontratacion
    • Relative Weakness
      • Spain became part of wider European economy
      • Lacked expanding middle class so merchants and merchant vessels fail to expand sufficiently due to increasing trade
      • Most successful merchants aspired to move out of commerce and into nobility
    • Growth in population
      • Increase in agricultural production
      • High demand for woollen clothes + silk
    • 3 Economic issues
      • Inflation: imports of metal from NW generally spent outside Spain
      • Increased commodity prices
      • Interest rates: Due to debt + reliance on foreign finances
      • Important parts of Spanish economy in hands of foreigners
    • Trade with NW
      • Spain stopped trade w/ NW  + looked for needs elsewhere
      • 1590's Dutch and English start trade undermining Spain's trading
    • Stared off w/ 36 million ducats in debt + left  85 million ducats in debt

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