Cardinal Mazarin groomed Jean-Baptiste Colbert to take his place as an economic advisor to King Louis XIV of France. As Controller-General of Finances under Louis XIV, Colbert implemented a four-part economic plan to make France economically self-sufficient and maintain its position as the wealthiest state in Europe. This included improving tax collection, promoting imperialism and colonial expansion, protecting French industries through tariffs and regulations, and monitoring industry quality standards. However, Louis XIV later squandered the wealth Colbert had generated by oppressing Protestants and failing to reform the unjust tax system, and spending lavishly on the Palace of Versailles and costly wars.

1. LOUIS
XIV
Setting the Stage
for Change

2. Economic Policies

3. Economic Background
 As we have seen, Louis XIV came
to the throne at age five.
 Because of his young age, a trusted
member of court, Cardinal
Mazarin, was selected to rule for
him as regent until Louis came of
age.
 Mazarin was a shrewd economist
who had made France into an
economic superpower, and was
grooming a successor to eventually
take his place: Jean-Baptiste
Colbert.
“I am leaving France something
 In fact, when Cardinal Mazarin was more valuable than wealth – I am
dying, legend has it that he said: leaving it Colbert.”

4. Jean-Baptiste Colbert
► Following Mazarin’s death,
Colbert served as Louis XIV’s
Minister of Finance (Controller-
General).
► Interestingly, Colbert was not born
into nobility, but was a member of
the bourgeoisie, or middle class.
► His goal was to make France totally
economically self-sufficient.
► He did not want to rely on imports
from other European countries.
► He was instrumental in maintaining
France’s position as the wealthiest
state in Europe.

5. Jean-Baptiste Colbert
 In order to support Louis’s
dreams of magnificence, a
sound financial system and
good economy were crucial.
 This made Colbert the King’s
most valuable minister.
 Colbert was able to achieve
the financial security Louis
required by implementing a
four-part economic plan.
 By doing so, he drastically
reduced the annual deficit.

6. Jean-Baptiste Colbert
 In order to maintain France’s economic superiority, Colbert developed and
implemented a four-part grand economic plan for the nation.
1. As controller-general, Colbert improved France’s tax collection system by
implementing an intendent administrative system in each of the country’s
provinces.
2. He promoted imperialism and colonial expansion into India, Africa,
North America, South America & the Caribbean.
3. He supported mercantilism and protected French industries by limiting
imports through tariffs.
4. Colbert regulated and closely monitored the products created by French
industries.
– He assigned inspectors to monitor quality.
– The improved quality of French products then led to greater exports, and more
money for the French economy.

7. Colbert’s Tax Reformation
 As controller-general of finances, Colbert
sharply reduced treasury deficit through
better taxation system, administered at the
provincial level by intendents.
 To do this, he lowered income taxes for the
wealthy and increased indirect taxes on
things like road tolls, milling & shipping
taxes.
 In addition, tax exemptions for the
nobility, the clergy and the majority of the
bourgeoisie remained intact
 This policy placed the tax burden squarely
on the shoulders of the poor.
 Colbert’s reasoning was that, if the rich had
more money, they would spend it on more
French goods, thereby helping the economy.

8. Colbert’s Tax Reformation
 Today, this theory is referred to as
“trickle-down economics”.
 Unfortunately, corrupt tax
collectors often made large
profits.
 This heightened the economic
differences between regions of
France.
 The tax system encouraged people
to move from heavily-taxed
regions to regions with lower
taxes.
 Higher-taxed regions then became
even poorer than before.

9. Imperialism & Colonialism Under Colbert
France’s Global Territorial Holdings, circa 1660

10. Imperialism & Colonialism Under Colbert
 During Colbert’s tenure as the
controller-general of France, he was
responsible for the creation of a
powerful merchant marine to ensure
France’s exports were greater than its
imports.
 These ships took finished goods to its
new colonies around the world including
the Americas and the Caribbean, and
returned with raw materials to make
more exportable goods.
 French colonization was greatly
encouraged by Colbert.
 However, these colonies were not
encouraged to self-sufficiency, rather they
were potential markets for finished
French goods and a source of raw
materials.

11. Imperialism & Colonialism Under Colbert
 In mid-17th century, the
English increased their activity
in Newfoundland and caused
the French to show concern for
their fish trade since it played
an important role in the
economy.
 This concern prompted Louis
XIV to establish a colony at
Placentia, France’s principle
fishing base in Newfoundland.
This allowed a communication
link with New France.

12. Imperialism & Colonialism Under Colbert
France’s Global Territorial Holdings, circa 1754

13. French Mercantilism Under Colbert
 Under Colbert, the a series of mercantilist economic and financial policies –
meant to promote and protect French industry – were put into place:
– Cloth could not be imported from England.
– Sugar could not be imported from French Haiti.
– Subsidies were given to French shoe manufacturers.
– Free trade between French provinces was encouraged by eliminating
interprovincial tariffs.
– French ships had to be used to ship raw materials from, and finished
products to, French colonial holdings.
– French colonies were banned from purchasing Dutch goods.
– Italian manufacturers were incentivized to build factories within France.
– A trading monopoly was given to one company to trade French goods
with India.

14. French Mercantilism Under Colbert
 Colbert’s mercantilist domestic
policy was intended to generate more
money for the French treasury.
 Industry and agriculture were
encouraged and efforts were made to
create free trade between the interior
provinces of the kingdom.
 Colbert introduced standards for all
goods manufactured in France.
 There were penalties for shoddy
work.
 He had all the furniture and
decorations for Versailles made by
French artisans to use Versailles as a
showplace for all French goods.

15. French Mercantilism Under Colbert
 Initially, many countries
bought from France.
 But, France bought very little
from other countries.  This
is why FREE
 In turn, those countries,
because no one was buying TRADE is a delicate
from them, grew poorer. balance!
 As a result, they had no more
money to spend.
 As a result, France’s economy
eventually stagnated.

16. The Effect of Colbert’s Economics
 Together, Louis XIV and
Colbert worked hard to
support trade and state
businesses.
 They attempted to build up
France’s wealth from within –
and, for a short time, France
became very wealthy.
 But regulations and lack of
free trade eventually stunted
France’s strong economic
growth.

17. The Effect of Colbert’s Economics
 When Colbert died, Louis totally screwed up the economic
policies he had so carefully designed.
 First, Louis began by oppressing the Huguenots (French
Protestant Christians), who formed the majority of French
industrial leaders, causing them to flee to other European nations –
taking their businesses & wealth with them.
 Louis then failed to adjust the complicated and unjust tax system.
 The poor continued to carry the undue tax burden while the nobles,
clergy, and government were exempt from most payments.
 Finally, Louis took what was left of France’s wealth from Colbert’s
careful savings and squandered it on two things: Can you guess
what those two were?

18. The Effect of Colbert’s Economics
The Palace of Versailles Louis’s Vanity Wars

19. Political Policies

20. Absolutist Political Ideology
 Louis XIV marked his reign by
being an absolute ruler, which
was based on the theory of
divine right.
 He believed he was the State.
 He trained the Estates General
(parliament) into submission.
 He utilized councilors of his own
choosing for different branches
of government.
 Colbert for finance & justice,
Louvois for war, Lionne for
foreign affairs.

21. Absolutist Political Ideology
 Louis XIV used the
bourgeoisie (moneyed
middle class)to build his
centralized bureaucracy.
 He curtailed local
authorities and created
specialized ministries,
filled with professionals
loyal only to him.

22.  Louis XIV broke with
established French ruling
traditions by excluding family
members, princes, and old
military-based nobility (Nobility
of the Sword) from Council.
 Instead, he relied on a new
judicial nobility (Nobility of the
Robe), who were derided by the
Duc de Saint-Simon as a “reign
of the lowborn bourgeoisie”.
 On a local level, government was
run by easily-removable
intendants.

23. 2
Absolutist Political Methodology
Louis XIV’s Four Methods of Centralizing Royal Authority
1. Louis XIV took the sun as the symbol of his absolute power and was often
quoted as saying, “L’etat, c’est moi” (“I am the state”).
2. During his 72-year reign, Louis XIV never once called a meeting of the
Estates General (French parliament).
3. The King expanded the bureaucracy and appointed provincial intendants,
royal officials who were tasked with:
1. Collecting taxes
2. Recruiting soldiers
3. Carrying out Louis’s policies in the provinces.
4. Finally, Louis XIV created the strongest army in Europe, which he used to
enforce his policies both at home and abroad.

24.  In France, Louis XIV instituted the
following reforms to centralize his
power:
1. He eliminated the Estates
General’s traditional power to
obstruct his legislation.
2. The judicial (court) structure was
reformed by instituting new codes
of civil procedure (1667) & criminal
procedure (1669).
3. In 1667, in an effort to control the
riot-prone Parisians, he established
the Office of Lieutenant-General
of Police to enforce the laws of the
city, which was then copied by
other French cities.

25. Absolutist Political Methodology at Home
 To replace the role traditionally played by the Estates
General, the day-to-day governing of France was done by
three councils:
 The Court of State
 The Court of Finances
 The Court of Dispatches
 Louis XIV presided over all three councils and met with all
high government officials at least once a week.
 These actions gave Louis absolute control of both the
government’s legislative and executive branches.

26. Absolutist Political Methodology at Home
 Louis XIV also insisted that all laws
be approved by him before becoming
official.
 The King staffed his government
bureaucratic offices with upper-
middle class people (intendants).
 This robbed the nobility of their
traditional political powers.
 Indendants were paid a salary by the
government and were therefore loyal
to the monarchy.
 They were expected to be faithful to
the wishes of the King, and reinforced
the idea of his absolutism.

27. Absolutist Political Methodology at Home
 To ensure that his government
employees were loyal, Louis
XIV took the following steps:
1. Used bribery to ensure
provincial governors loyal
to him were elected.
2. Reduced provincial
governor terms from 5 to
3 years (in case they were
not loyal, they would not
be able to cause too much
damage).

28. Military Reforms

29. An Absolute Monarch’s Military
 To protect and expand his power, Louis XIV created a
standing army and appointed a Secretary of Modern
Warfare to modernize it.
 In times of battle, Louis XIV actually took personal
command of the army and directly supervised the military.
 The new French army was revolutionary, in that its soldiers
were professional and trained in the art of warfare.
1. Soldiers no longer lived off the land, as military officers were put in
charge of feeding their troops
2. An ambulance corps was created to treat the wounded.
3. Uniforms and weapons were standardized.
4. A system of training, recruitment, discipline & promotion was
created.

30. An Absolute Monarch’s Military
 To prevent rebellion within the military ranks, Louis saw to it that,
for every colonel appointed from a great noble family, there was
also a colonel appointed from a lesser noble or middle class family
– this eliminated or lessened class conflict.
 Troops were raised and paid in the name of The King. Royal
inspections made certain that regulations were being complied with.
 This made soldiers obedient to The King, not the commanders, so
the soldiers would never follow their commanders in rebellion.
 With this new style of warfare, France was able to dominate
European politics for decades.
 Other European countries were then forced to copy this new
military system in order to remain competitive.

31. The Sun King’s Vanity Wars
 After reforming and greatly
enlarging the French military,
Louis XIV fought in a series
of four wars, ostensibly to
prove France’s strength.
 In reality, the wars were fought
to inflate Louis’s already-
massive ego.
 Louis’s ambition and his large,
well-trained military freaked
out many European nations, so
many of them formed alliances
to stop France’s military
advances.

32. The Sun King’s Vanity Wars
 War of Devolution (1667–1668): Fought against
England, Sweden & The Dutch.
 Dutch War (1672–1678): Fought with Sweden &
England against The Dutch, Spain & Austria.
 War of the Grand Alliance (1688–1697): Fought
against the English, Dutch, Spanish, Austrians &
Germanic princes, as well as in Ireland and Americas.
 War of the Spanish Succession (1701–1714): Fought
with Spain and the Germanic princes against the British,
The Dutch, Austrians & Portuguese.

33. The War of Devolution
 By 1660, France had 20 million
people (4 times as many as
England).
 The French army, 100,000 in peace
time & 400,000 in wartime, was
ahead of any other nations’ armies
in size, training & weaponry
 In 1667, France tried to take the
Spanish Netherlands
 The Dutch were able to repel
Louis’s armies in 1668, and the
French only managed to gain 12
minor cities on the Franco-Dutch
border.

34. The Dutch War
 Beginning in 1672, Louis – at the
encouragement of Colbert – initiated a
military action against the Dutch
Netherlands.
 At the heart of the conflict were
colonial trade issues.
 When French forces began to enter
their farmlands, The Dutch opened the
dikes & flooded the countryside to save
themselves, but were forced to give up
territory
 Again, France lost and, by 1678, had
gained just a few new towns
 Louis tried to fight additional wars, but
found it increasingly difficult.

35. The War of the Grand Alliance
 Sometimes referred to as the Nine
Years’ War or the War of the League
of Augsburg, the War of the Grand
Alliance began in 1688 and concluded
in 1697.
 This conflict was instigated by Louvois
(Minister of War), who convinced
Louis that the German princes had
“stolen” the Alsace-Lorraine region,
which lies on the present French-
German border.
 In this war, the German princes
banded together with many other
European powers to repel the French.
 Again, Louis made only modest
territorial gains.

36. The War of Spanish Succession
 In 1701, the Spanish king died
without an heir
 Three different rulers claimed that
they should name his successor.
 Louis wanted Spanish throne for
his grandson, Phillip
 The other European monarchs did
not want France’s military &
Spain’s Armada so closely
connected
 As a result, England, The
Netherlands & the Holy Roman
Empire declared war on France.

37. The War of Spanish Succession
 In 1713, after many defeats, Louis
XIV accepted the Treaty of Utrecht
 The Treaty stated that Louis’s
grandson, Phillip, got Spanish
throne
 However, it stated that France &
Spain could never be ruled by the
same monarch.
 Additionally, Louis XIV had to give
up most of territory he had taken.
 In the end, the war benefited
England at expense of France &
Spain.

38. The Sun King’s Military Legacy
 The War of the Spanish
Succession left France in debt and
greatly weakened militarily.
 In the end, Louis’s wars had cost
France too much in money, blood,
and postponed social reforms.
 Eventually, The War of Spanish
Succession and deaths in the royal
family broke Louis.
 He died in 1715.
 The Sun King, whose wars caused
so much death, ultimately resented
for his pursuit of glory.

39. The Sun King’s Military Legacy
 The French kings who
succeeded Louis XIV
added significant, but not
overwhelming, territory.
 Due to the cost of those
wars, for the next 75
years France would
teeter on the edge of
bankruptcy.