Charles economy

Question 1

Result of wars on economy

Answer 1

• Burden fell on Castile to pay for the wars
• Aragon contributed little as they were in economic decline
• Dutch economy was exhausted by 1530s and 1540s
• Naples contributed sum of 1.l75 million ducats (1525-29) from taxation

Question 2

New world

Answer 2

• successful silk and cloth industry as the people employed 10,000 to 50,000
  -Seville secured monopoly of American trade
• Great silver and gold mines of potosi 1545
• Introduction of bullion from new world led to Inflation inside of spain e.g price of wheat doubled

Question 3

Domestic

Answer 3

• Household expenses amounted to 1/10 of national income cost
  -Alacabala tax was 75% of income by 1550 however this could not keep with the rise in inflation
• Taxes from the church e.g cruzada 121,000 ducats per annum and the susibido tax although church was exempt from alacaba tax
• sale of royal lands 1.7 million ducats (1537-55)
• income from cortes went from 121,000 to 440,000 by 1550
  -borrowing of 30 million with 10% interest to fund the military campaigns

Question 4

State of economy by end of the reign

Answer 4

massively in debt from borrowing
virtually bankrupt
led him having the sue for peace with France in 1559