Economic Causes of the French Revolution

Describes in depth the economic causes of the French Revolution and highlights the socio-economic factors that fueled revolutionary fervor. From widespread poverty and food shortages to high tax burdens and the financial crisis facing the monarchy, this review explores how economic grievances contributed to the discontent of the French people.

It focuses on class differences and opposition to a privileged aristocracy, setting the stage for a transformative period in history. It provides a brief look at how economic inequality and financial instability played a key role in catalyzing the revolutionary spirit that reshaped the direction of France in the late 18th century.

Economic causes of the French Revolution

Historical Facts	Economic causes of the French Revolution
Financial Crisis	France faced severe financial difficulties due to wars, lavish court spending, and debt from loans.
Taxation Inequity	Heavy taxation burdened the common people, while the nobility and clergy often enjoyed exemptions.
Bread Prices and Famine	High bread prices and food shortages, particularly during famines, intensified social discontent.
Inefficient Tax System	The tax collection system was outdated and inefficient, contributing to financial mismanagement.
Economic Inequality	A stark contrast between the wealthy elite and the impoverished masses fueled social resentment.

Introduction

The French Revolution, also known as the Revolution of 1789, was a traumatic movement that affected France and the world during the late 17th and early 18th centuries. This revolution lasted from 1789 to 1814 because it had a great impact on the nation, causing a turning point in the history of the world. Many events took place during this time, such as the execution of King Louis XIV and the reign of Napoleon. There are many reasons for causing the revolution, but this revolution had both economic and political causes.

Economic Conditions

Direct causes of the French Revolution included a massive financial crisis caused by massive debt, lavish government spending, and an antiquated tax system that brought little money into the treasury. The current tax system placed the greatest tax burden on the shoulders of the third estate and virtually ignored the first two estates’ responsibilities. Successive attempts to reform the system proved fruitless in the face of opposition from the clergy and nobility.

(1) Bankruptcies of the French Government

The French government faced bankruptcy of the worst kind. From 1614, the French monarchy operated without convening the legislature of France known as the Estates General. Successive kings managed their fiscal affairs by increasing the burden of an ancient and unequal system of taxation, by borrowing money, and sometimes by selling titles of nobility and other privileges. Holders of noble titles, however, were exempted from additional taxes. On the eve of the revolution, France was deeply in debt and on the verge of bankruptcy. The extravagant spending of Louis XIV. to luxuries such as the construction and maintenance of the magnificent palace at Versailles, the social eccentricity of the royal court under the reigns of Louis XIV, Louis XV. and Louis XVI and the luxurious tastes of Marie Antoinette, Louis XVI’s queen, were exacerbated by heavy spending on the Seven Years’ War (1756-63) and the American Revolutionary War (1776-83). An empty treasury was the spark that set the French Revolution in motion in 1789. While French peasants starved and died, the royal court, clergy and nobility held feasts and feasts. The French government is mishandling the national economy. She had no regular budget. It was wasting money without proper planning and the national debt kept increasing.

(2) High Taxes

Unlike trading states, France could not rely solely on customs duties to generate revenue. While average tax rates were higher in Britain, the burden on ordinary people was greater in France. Taxation in France relied on a system of internal rates separating regions in France, which prevented the development of a single market in the country. Taxes such as the extremely unpopular gabelle were outsourced to private collectors who were allowed to collect far more than the government required. This system led to the arbitrary and unequal collection of many excise taxes in France. Furthermore, royal and feudal (signorial) taxes were collected in the form of compulsory labor (corvee).

The tax system in France exempted the nobility and clergy from paying taxes. The tax burden was thus borne by peasants, wage workers and the professional and business class. These groups were also cut off from most positions of power in the regime, causing great unrest among them. Many public officials had to buy their positions from the king. They tried to extract from their appointment not only the money they had to pay for their positions, but also to enjoy hereditary rights to these positions. For example, in a civil dispute, the litigants had to pay certain fees to the judges. Such a practice puts justice beyond the reach of ordinary people.

(3) The King’s Expenses

Another source of financial unrest was the cost of running Louis XVI’s personal court at Versailles. More than 15,000 people benefited from the country’s wealth and gave little in return.

(4) American War of Independence

The French monarch was an ardent supporter of the American War of Independence and decided to help the independence fighters by sending them a huge amount of resources. He decided to build a strong, efficient navy, capable of competing with England’s naval arsenal. He sent his forces. to America, where the War of Independence was raging. This act was a key point in the naval victory of the Independents. But this gesture eventually caused the budget of the French monarchy to dry up. In total, the French spent 1.3 billion livres in direct support of the Americans, in addition to the money they spent fighting Britain on land and at sea outside the US. France’s status as a great modern power was confirmed by the war, but it damaged the country. finance. Although France’s European territories were not affected, winning the war against Great Britain with battles such as the decisive Siege of Yorktown in 1781 came at a great financial cost, severely degrading the fragile finances and increasing the national debt. France gained little. except that it weakened its main strategic enemy and gained a new, fast-growing ally that could. become a welcome business partner. However, the trade never materialized, and in 1793 the United States declared its neutrality in the war between Great Britain and the French Republic. Most historians argue that France was primarily seeking revenge against Great Britain for the loss of territory in North America and India from the previous conflict. However, Jonathan R. Dull has argued that France intervened due to dispassionate calculation, not Anglophobia or a desire to avenge the loss of Canada.

(5) Financial crisis

Participation in the American Revolution and after the huge expenses of King Louis XIV. and Louis XVT, the country of France fell into considerable accumulated debt at the end of the 18th century. The effect of the country’s debt was seen on its people. Marie Antoinette, wife of Louis XVI, described much of the masses when she wrote: “The tenderness and seriousness of the poor people, who, despite the taxes with which they are overwhelmed, transported themselves with joy to see us.” The upper class therefore imposed heavy taxes to get them out of debt. To save France from bankruptcy, Louis XVI asked for the help of the Estates General. The general estate consisted of the first (clergy), second (nobility) and third (all others) estates. However, there was much conflict within the Third Estate as it was made up of all who were not part of the royal family, clergy or nobility. The third estate was very unhappy because although it had over 80 percent of the population, it was still the same. one vote as two more estates with fewer people.

When King Louis XVI came to power, he realized that these problems existed. At first he did not know what to do until he found a man named Robert Turgot. He was described as “tactless. judicious, impatient and eager’, when he tried to introduce a major reform, namely the taxation of the nobles, he was in trouble. After Turgot was rejected, the king threw him out of office. Taxation still persisted and only the third estate is taxed, excluding the nobility and clergy. Marie Antoinette again describes the patient masses to improve their lives by writing, “What a joy it is that people of our rank so cheaply win the love of a whole nation.”

Jacques Necker, a Protestant banker from Geneva, was appointed Director General of Finance. It was alleged that he financed the American war and borrowed huge sums of money. This only increased the crown’s debt so much that fifty percent of its income went to pay the interest on the debt. Necker was to cause serious trouble for future controllers. As Necker was seen to be waging a costly war without raising taxes, they could no longer raise taxes in peacetime. Necker wanted to replace independent financiers with dependent, salaried officials who could be appointed and dismissed by the Comptroller General. He managed to get rid of the top 50 General receivers.

This led Louis XVI to convene the Estates General in 1789. The general status office was a place where representatives of each social class could be represented. Many issues would be discussed here and at this time in French history it would center on the economic crisis. When the Estates-General met in 1789, the deputies or representatives of the Third Estate demanded that the three estates meet together, with each deputy having an equal vote. In this way, the first and second states could override the third state.

Many of the laws that were passed in France also became extremely burdensome on the common people as they excluded the clergy and nobility from paying taxes. The harvest was also poor and food was very expensive. People were enraged when they heard stories of lavish parties in beautiful houses and palaces where much food was served which was either wasted or given to the dogs. Demand for manufactured goods fell and many artisans, merchants and farmers were out of work. A trade tax was also instilled in the peasants, where they would be taxed from province to province, similar to earlier taxes imposed in America. Arthur Young describes. in his Travels in France “On the great road for thirty miles I did not see a single sawmill, nor did I meet a single gentleman’s carriage, nor anything else on the road that looked like a gentleman,” Among his numerous observations on the Third Estate in France, he also noted: ” At present it was said that some great people must do something for the poor.” This was a direct prediction of the revolution.

People were angry and rioted. In July 1789 they stormed the Bastille and killed many people. people, and in October 1789, angry middle-class women marched on Versailles and demanded that the royal family move to Paris and that measures be taken to help feed the people. Bread riots were also common among the hungry poor. The constant competition between social classes was another problem that led France to revolution. The nobility wanted to reclaim their place in society and the middle class wanted to. political power along with their economic power. The peasants resented the constant disrespect from the nobility and other groups. They were angry because they owed everything they had and earned to their noble landowners. The upper classes were also very restless due to the spread of the Great Fear, during which hungry peasants went around killing citizens and looting homes and businesses. Society as corrupt and dishonest.

(6) Failure of economic reforms

During the regimes of Louis XV. (1715-74) and Louis XVI (1774-93), various finance ministers were appointed to improve France’s financial situation. The most notable of these was Turgot (1774-76). He decided on the subject of finance. In the first place he intended to follow a policy of strict economy. In a letter to King Turgot, he outlined his views and summarized them in the sentence: “No bankruptcy, no new taxes and no loans.” Thanks to a rigid economy, Turgot achieved satisfactory savings for the treasury. However, the king was reluctant to reduce royal expenses.

In order to generally improve the economic conditions of the people, Turgot issued the first reform edict in 1774, which concerned the grain trade. This edict abolished all government regulations related to the purchase and sale of grain and allowed full freedom in interprovincial grain trade. However, Turgot’s edict did not achieve much success. His enemies, who were interested in the old system, opposed his reform edict. In addition, the lack of grain contributed to the failure of this experiment. Fear of famine brought disorder and grain prices rose. This led to a large-scale riot that became known as the “Grain War”, which had to be harshly suppressed. Thus, Turgot’s experiment with the liberalization of the agricultural sector ended in failure.

Despite these setbacks, Turgot continued to propose reforms. In early 1776, he presented several more reforms to the Paris parliament. The two most important of these were the abolition of the multitude and the dissolution of most guild corporations. He also suggested introducing the principle of tax equality. Through this proposal, he suggested that the privileged classes should also be taxed to raise additional revenue for the state. The reform proposal concerning the guilds aimed to destroy their monopolies and restore the natural law of free competition. By abolishing the guilds, Turgot wanted to free industry, advance commercial development, lower prices and allow artisans to enjoy their natural right to work.

Turgot’s proposed reform edicts met with fierce opposition from the Parliament of Paris. Despite this opposition, Louis XVI ordered the registration of these edicts. However, Turgot and the king had to face opposition and hostility from the most powerful groups and privileged classes, such as the guilds, parliaments, court favorites and especially Queen Marie Antoinette. Under strong pressure from these quarters, Louis XVI had no choice but to dismiss Turgot from his position in 1776. Guild corporations were re-established and the privileged classes still remained outside the tax net.

After dismissing Turgot, after a few months Louis XVI appointed Necker (1776-81), the most famous of the bankers, as director-general of finance. To improve France’s financial resources, Necker first resorted to new loans and administrative reforms. However, French support for the English colonies in America against England in the American Revolutionary War proved costly to the treasury and the national debt increased by more than one and a half billion livres.

Necker’s administrative reforms were sound, if hardly sufficient as a remedy. He proposed the reduction of many unnecessary offices, simplified the accounting system, and began to curtail the functions of the revenue farmers by taking over the collection of several taxes. During the war years he provided loans amounting to several million livres without raising taxes. These measures contributed to Necker’s reputation as a financial wizard. However, he was later forced to take out loans to pay interest on earlier loans. This led to a financial crisis. With the financial situation spiraling out of control, Necker had no choice but to propose that the privileged classes be taxed. After this proposal, Necker met the same fate as Turgot and was released.

After the dismissal of Necker, Louis XVVI appointed some other ministers between 1781 and 1783 who tried to do their best to solve the financial chaos in France. In a desperate attempt to save the monarchy from economic crisis and financial disaster, Louis XVI appointed Calonne (1783-87), who had the support of Queen Marie Antoinette. He was a highly intelligent and resourceful person. He undertook his duties with full awareness of the seriousness of the situation.

Calonne believed that the best cure for France’s financial ills was to restore the people’s confidence in the government, and he emphasized that the best way to restore public confidence was to give the appearance of prosperity. Calonne thus blew up the economy and expanded the government’s credit by borrowing from capitalists. During his three-year tenure, he borrowed a huge amount of money. A small portion of the spending went to silence opposition to his reforms, such as newspaper publishers and members of parliament in Paris. A certain amount was also spent on gaining the support of the royal family and the court. The greater part of the funds went to pay off unpaid debt and to support community service.

That is, artificial prosperity set in a boom period in France. Increased production kept up new goods and increased employment and greatly increased the income of workers. In addition, France witnessed several good agricultural seasons and trade and industry did not suffer as the war with England officially ended with the Treaty of Paris (1783). Meanwhile, government spending began to increase, while tax revenues lagged behind.

The economic boom was like a bubble that burst very soon. Despite constant tax increases, the annual deficit rose to more than a hundred million livres. Under these circumstances, the economic crisis developed into serious proportions. France has reached a state of virtual bankruptcy. No one was prepared to lend the king funds sufficient to cover the expenses of the government and the court. The loans amounted to one thousand six hundred and forty-six millions, and the annual deficit was one hundred and forty million livres.

When Calonne found that the economic crisis in France was beyond salvation, he submitted a secret memorandum to Louis XVI in which he laid out a comprehensive plan of reform. Louis XVI reluctantly supported Calonne to call an assembly of 144 representatives of the three estates on 22 February 1787 to deal with the financial situation, confident that the Parlement in Paris would never approve his reform proposals.

Calonne appeared before an assembly of notables, read an indictment of the ancien régime, and then presented his reform proposals. In these proposals, Calonne proposed: (1) the abolition of the multitude; 2) abolition of internal tariffs; (3) permission to trade freely in grain in France; (4) the extension of the system of provincial assemblies throughout France; (5) reducing the burden of taille (property tax) and gabelle (salt tax); (6) conversion of the Discount Bank into a state bank; and (7) a proposal to impose a land tax payable by all persons of property, whether clergy, nobility, or commoners.

The members of the Assembly of Notables felt that by approving Calonne’s reform proposals they themselves would end their social supremacy, destroy their fiscal privileges, and agree to a vast reform of the entire political, social, and economic structure of France. The huge deficit that Calonne suffered gave the Assembly of Notables the opportunity to disguise its selfish opposition to the reforms proposed by Calonne under the pretext of public interest. Such was the opposition to Calonne’s proposed reforms that Louis XVI was forced to dismiss him. Fearing for his life, Calonne fled to England.

(7) Famines

France’s economic and financial problems were exacerbated by severe food shortages in the 1780s. A crop failure in the 1780s caused these shortages, leading to a sharp increase in the price of bread. The bread crisis was one of the main causes that led to the Parisian mob starting the revolution of 1789. Poor conditions in the countryside forced the rural population to move to Paris, and the city was overcrowded and full of hungry and disaffected masses. people.

(8) Taxes by Edicts

When the economic and financial situation in France began to deteriorate, Louis XVI tried to impose additional taxes by issuing royal edicts. However, he had to face strong opposition from various sections. Since the bankruptcy of the state could not be influenced by anyone, the king was advised to call in the defunct Estates General to resolve the country’s economic crisis. Hoping to gain support for his tax proposals, Louis XVI agreed to summon the Estates General. The meeting of the General Estates Assembly on May 5, 1789 and the subsequent events brought about the Revolution of 1789 in France.

(9) Lawless behavior of King Louis XVI

The lawless behavior of King Louis XVI was the main problem that led France to revolution. Louis XVI granted special privileges, licenses and trades to specific individuals. He took government functions away from the middle class and gave them to the nobility, who were regaining influence in society. Jean-Marie Roland writes: “Heavy fines were imposed on manufactured goods.” As a result, the nobles gained monopolies on manufactured goods, and some even demanded that the peasants living in their region buy their goods only from them. Arthur Young describes the people as “almost as wild as their country. their own town of Cobourg, one of the most brutal, filthy places to be seen; mud houses, no windows, and a pavement so broken as to hinder all travellers. ” Thus the misfortunes of the peasants. increased and were prevented from advancing and forced to remain at their low level.

(10) Louis XVI’s inability to solve the crisis

Faced with all these problems, Louis XVI needed more funds to manage his country. His financial advisers, inspired by Turgot, decided to turn on the nobility and tried to pass a law that would make them pay higher taxes. The nobility opposed the king’s decision. By a clever game of persuasion, they even rallied some of the third estates to their side to denounce the power of the king. This marked the first stage of the revolution.

One of the main events of this period is the “journee des tuiles” (day of tiles) on June 7, 1788 in Grenoble. The king tried to pass a law in parliament that would have allowed him to take out a significant loan to clean up the French deficit. However, Parliament refused, leading to the Minister of Justice firing them. The wealthy and powerful MPs of Grenoble decided to protest by openly rejecting the decision. The King sent his soldiers to Grenoble to disperse the crowd that had gathered in Grenoble in support of the deputies. The king’s soldiers were greeted by roof tiles flying from the rooftops of the city. From now on I will be the winner. the deputies decided to pay no more taxes to the king and asked the representatives of all the other regions of France to do the same. Jacques Necker, Minister of Finance of the King

recognized the Dauphine assembly and became very popular. The king was at a dead end. He couldn’t raise taxes and didn’t have the power to find the money he needed to govern. His last chance was to call a meeting of the Estates General. This meeting had not been convened for more than 300 years and represented the last hope for the king to find a solution to the country’s financial turmoil,

A government-induced economic crisis eventually created a revolution. The strong belief that liberty could not exist if the legislative and executive powers were vested in the hands of a single monarch or body of judges proved to be true. As a result, the people of France got rid of absolute monarchy and dictatorial rule and entered the phase of the Napoleonic era.

Conclusion

The economic causes of the French Revolution were actually very important and influential. Without this type of cause, it is very likely that the revolution in France would never have happened. Yet there are three other important factors of revolution, political, social and cultural. The economic situation of France was another cause of the outbreak of the French Revolution. The economic situation of France worsened due to the foreign wars of Louis XIV, the Seven Years’ War of Louis XV. and other costly wars. During the reign of Louis XVI, the royal treasury was emptied by the extravagant spending of his queen, Marie Antoinette. To get rid of this condition. Louis XVI appointed Turgot as his finance minister in 1774. Turgot tried to minimize the expenses of the royal court. He also advised the king to impose taxes on every class of society. But due to the intervention of Queen Marie Antoinette, Louis XVI dismissed Turgot. Then Necker was appointed Minister of Finance in 1776. To outrage the people, he published a report on the income and expenditure of the state. But he was also dismissed by the king. Another person who was appointed by the king as finance minister of France in 1783 was. Callon. He adjusted the borrowing policy to cover the expenses of the royal court. But thanks to this policy, the national debt of France increased from 300,000,000 to 600,000,000 francs in only three years. Then Callone proposed to impose taxes on all classes. But he was released by the king. In this situation the king finally summoned the estates general. Economic instability was one of the most important causes of the French Revolution.

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