Economic Problems And Royal Fiannce Flashcards
Thriving economy (5+)
Lot of suitable farming land
1730s = France followed British and improved agricultural techniques = fertilisers and crop rotation
Between 1715-1771 French commerce increased almost eight fold = France second only to Britain in trade
Trade with colonies quadrupled
Industrial production doubled 1715-1771
Economic problems (4+)
Economy predominantly agriculture
Rural overpopulation = yield from French farms very low
Variations in weight measurements across the country - 25000 different units of measurement = offered ample opp for fraud
Lacked a network of rivers and canals to carry goods
Why was there problems when collected tax (3+)
Indirect taxes collected by farmers and syndicates = corruption
No central treasury or bank so impossible for minsters to anticipate income and budget accordingly
Financial officials and corporations purchased positions = practice for them to keep something they collected
How were taxes collected (2)
Direct = royal officers who bought positions
Ferme generale second largest employer in France = bought in more than half of govs revenue
Types of direct tax
Taille = tax on property
Capitation = poll tax
Vingtiรจme = income tax
Types of indirect tax (6)
Gabelle - salt
Tobac - tobacco
Aides - consumer goods
Domaine - crown lands
Triage - custom duties
Timbre - stamp tax
Debt after Louis XIV death - just France (3)
National debt of 2 billion
Annual interest payments on this debt = 165 million = more than collected in tax
Balance of payments crisis
Debt from wars (3)
The war of Austrian succession + seven years war = cost 1.3 billion livres
Economic loss of all French colonies in North America
By 1764 = 2.3 billion livres of debt
When was seven years war
1756-1763
Debt after AWoI (2)
3.3 billion livre of debt
America chose to maintain commercial ties with Britain
What did Turgot do (5)
Cuts to royal expenditure
Demand that gov departments submit their expenses to CG and find ways to reduce expenditure
The removal of a number of pensions
Reforms of the tax farming system to improve efficiency
Opposed French participation in AWoI
Who was Turgot (4)
Appointed CG in 1774
Friend of Voltaire
He was an idealist and wanted justice
Forced to resign in 1776 under pressure from queen and ministers
Turgot abandoned proposals (2)
Replace indirect tax with property tax = second estate opposed
Free trade in grain = poor harvest 1774 increased bread prices = flour wars in early spring 1775
Turgot six edicts (6)
1776
Abolish all privileges + tax all + grant man right to work without restriction
Fifth = suppressed the guilds
Sixth = abolished the corvee in favour of tax paid by landowners
Registered by a lit de justice in march
Edicts forgotten after resignation in may 1776
Who was Necker (4)
Protestant so was named director general of finances in 1777
Wealthy banker
Tried to bring reform
Recalled in august 1788 + served until 11 July 1789