France was facing a financial crisis in the late 1700s due to excessive spending, debt, and a poor harvest. Taxes had risen sharply but were largely paid only by peasants while the nobility and clergy were exempt. King Louis XVI called the Estates General to address the crisis. The Estates General divided France into three groups: the clergy, nobility, and commoners. Tensions were rising between the privileged first two estates and the burdened third estate of commoners.

7. Problems!
• France was spending
more money than it
received in income
– Took out loans to pay for
wars- debt!!
• 1788 France spent have
of its annual budget on
interest payments
• 25% on military
• 6% on the extravagant
lifestyle of the king and
queen

8. • Sharp rise in taxes
• Largely paid by the
peasants
– Most nobles and clergy were
exempt
• Poor harvest
• Increased price of bread
• 

9. The Estates General
• King Louis XVI called for the Estates General to
meet in order to solve the financial crisis
• France’s representative body- not met since
1614
• Divided France into 3 orders:
– 1st Estate: The clergy
– 2nd Estate: Nobility
– 3rd Estate: Commoners

10. 1st Estate: The Clergy
• Exempt from taxes
• Divided
– Higher clergy from
aristocratic families shared
the interests of the nobility
– Parish Priests were often
poor and and shared the
interests of the commoners

11. 2nd Estate: Nobility
• Leading positions in
government, military,
law courts, and
higher church offices
• Exempt from taxes
• Wanted to expand
their own power and
limit the power of the
monarchy

12. 3rd Estate: Commoners
• Peasants
• Skilled craftspeople and shopkeepers
• The bourgeoisie (middle class)
– Merchants
– Bankers
– Industrialists
– Lawyers
– Doctors
– writers

13. Revolution?
• Aristocrats and Bourgeoisie were drawn to the
ideas of the Enlightenment
• Both were upset with the monarchy
• This opposition led them to take action!