By 1789, France was in crisis due to political, social, and economic issues under the Old Order system. Society was divided into estates with the first and second estates (clergy and nobility) holding privileges without paying taxes. The third estate (commoners) bore the tax burden without political representation. King Louis XVI faced a bankrupt treasury due to wars, taxation, and a poor harvest. Ordinary people grew discontented with the lavish lifestyle at Versailles while they struggled. This led to the convening of the Estates General and eventual formation of the National Assembly, marking the start of the French Revolution.