Financial problems in France


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Financial problems in France

  1. 1. Financial Problems in France The Aristocracy Group
  2. 2. <ul><li>There were three basic causes of the French Revolution and the first was the worsening financial condition of the government. </li></ul>
  3. 3. <ul><li>The wars of Louis XIV had caused debts which grew when wars were fought in the 18th. They were in desperate need for more money. </li></ul>The main reason why France was nearly broke was because it spent a lot of money in the army, to fight the conflict called The Seven Years War (1756-763).
  4. 4. <ul><li>Because of French and Indian War, France was forced to give up its vast and valuable territory called New France (in America) to Spain and Great Britain </li></ul>
  5. 5. <ul><li>From 1778 to 1781 France provided military support to the American colonists to help fight their common enemy, Great Britain during the Revolutionary War. </li></ul>
  6. 6. <ul><li>But France’s financial problems were not only caused because of the military support, but also because the King and his family were consuming unbelievable amounts of money just to maintain their luxurious lifestyle. </li></ul>
  7. 7. <ul><li>As a result, by the late 1780s the government of France was almost in bankrupt. But the King decided spending would not be cut, so he wanted to increase taxes. This was a big problem due to the fact that for purposes of taxation the citizens of France had been divided in groups called the three states. </li></ul>
  8. 8. <ul><li>The first State : Clergy of the Catholic Church. They didn’t pay taxes and they were France’s largest landowners. </li></ul>
  9. 9. <ul><li>The second State : The nobility, the richest and more powerful citizens. They didn’t pay taxes and had a lot of privileges. </li></ul>
  10. 10. <ul><li>The third State : They were the only ones who paid taxes in France. They were the ones who weren’t members of the first and second state, including all of France’s poorest citizens. </li></ul>
  11. 11. <ul><li>Different crop failures in the 1780s caused these shortages, which of course led to high prices for bread. The peasants were double stricken by the economical and agricultural problems. </li></ul>
  12. 12. <ul><li>And perhaps more than anything else, the tremendous unfairness of this tax laws were which that lead to the outbreak of the French Revolution. </li></ul>
  13. 13. Sources <ul><li> </li></ul><ul><li>http:// / egh - damerow / french_revolution.htm </li></ul>