1.7 Economics pre-1685 Flashcards
how did Colbert succeed in revitalising French industry?
- he established high end domestic manufacturing companies
- for example the point-de-france that produced venetian lace was established in several towns
- tapestry goods produced by the gobelins rivalled imports
how were Colbert’s efforts to revitalise French industry damaging to the country?
- the focus on industry meants agriculture was almost ignored which was a rich source of capital
- Louis and the nobility ignored Colbert’s call to invest in industry for example French soap only received 0.02% of GDP from 1665-1668
- subsidies from the government ceased during the Dutch war
- Gobelins was costly and stopped entreupenerial development - private industries only received 2.5% of the 20 million livres awarded to the Gobelins each year
how did Colbert increase government control over industry?
- from 1664 to 1683 Colbert brought in 150 decrees controlling industry such as the 1669 law that insisted on a minimum thread count
- 1673 guild membership was made compulsory
what were some downsides to Colbert’s increase of government control over industry?
- measures imposed were excessive and showed a distrust of free enterprise
- they were widely ignored
- Colbert overestimated state power and there were protests on his policies
what skilled migrants did Colbert attract?
- Dutch tapestry makers
- Italian silk workers, glassblowers and lace makers
- English coalminers and naval constructors
what damaged the level of skilled workers in France?
the 1685 revocation of the edict of nantes that caused 37% of the countries Huguenots to flee the country, many of whom were skilled workers
by how much were import tariffs increased by and what effect did this have?
- they were trebled in 1667
- this led to lower tax yields as people could not afford taxes due to high tariffs
- this increased inflation and led to retaliatory tariffs such as the ones of French wine
what colonial trading companies were established
- the 1664 west and east indies company
- the 1670 company of the north
- the 1671 levant trading company
what were the successes of the creation of trading companies?
- 800 single females 15-30 known as the king’s daughters helped to increase New France’s population by 52% 1663-1672
- French wine, textiles and west indian sugar sustained a healthy baltic trade before being destroyed in 1688
- Lyon’s archbishop persuaded local merchants to invest 1 million livres in the east india company that gained entry into the spice market
what are statistics to show the success of the trading companies?
- from 1664-1704 the number of individual merchants trading overseas doubled
- there was a 93% increase in merchant ships weighing over 300 tons
what are the three limitations of the trading companies?
- there was a European economic depression from 1660-1685 that meant nobles had to be wise with investments - office sales and inheritance rights offered a safer alternative
- nobles saw trading companies as traps to force them to pay the taille- they were significantly more interested in wars
- the English and Dutch were unquestionable superior to the French trading companies that meant they lost 6.5 million livres in 11 years
what did Colbert do with direct taxation?
- reduced it from 60% to 40% to allow the economy to grow
- he also increased the efficiency of tax collection and tackled corruption through the codification of law
what were the successes of Colbert’s approach on direct taxation
- intendants supervised collections, tackling embezzlement and underpayment
- 20% of taxation was lost in 1683 compared to 52% in 1661
- taille yields in pays d’election were 6 million livres higher in 1676-78 than in 1672
what were the failures of Colbert’s approach on direct taxation?
- from 1662-1683 taille yields in pays d’etat were 94% lower than in pays d’election
- specifically, pays d’etat yielded 2.1 million livres whereas pays d’election yielded 36.5 million livres
- 30% of direct tax was still lost to tax avoidance
what was Colbert’s approach to indirect taxation?
- he increased indirect taxes on salt, drink and tobacco
- money lost through direct taxation was made up here
this is custom duties, sale tax etc.
what were the successes of Colbert’s approach on indirect taxation?
- he allegedly reduced debts by 67%
- increased royal tax and achieved 79% net revenue
what were the failures of Colbert’s approach on indirect taxation?
- his increase of indirect taxation caused serious revolts in Bordeaux in 1674 and Brittany in 1675 that required 10,000 troops to restore order
- Colbert’s claimed successes were found to have major discrepancies by Coblert’s successor
how did Colbert attempt to modernise infrastructure?
- he incentivised commercial investments by offering gifts, lucrative pensions, tax breaks and titles of nobility
how was Colbert successful in modernising infrastructure?
- the canal des deux Mers was opened in 1681
- it was 170 miles long with 100 locks and 3 aquaducts that reduced transport costs by 75%
- a postal system was also established with 800 offices
- colbert spent 600,000 livres on improving roads and subjected peasants to the corvee (months forced labour on highway maintenance)
- this led to the completion of France’s first paved road (between Paris and Orleans)
how Colbert not successful in modernising infrastructure?
- he had little success in standardising tolls
- private investment in trade remained inadequate
- the Rhine kept its 40 tolls
- local authorities resisted road improvements as they got to keep spilled goods
- bandit crime was rife
- the canal des deux mers took 7.5 million of taxpayers money even when peasants were facing starvation
how did Colbert use fines to his advantage?
- the chambre de justice fined 500 financiers for corruption
- 156 million livres were gained from fines from 1661-1665
what were intendants?
crown administrators sent to provinces to enforce edicts and taxation
what were the pays d’etat?
outlying provinces that retained some powers of self-government, including the ability to decide on and levy taxes
what were the pays d’election?
France’s central provinces, subordinate to royal control
