Economy under Edward Flashcards
What was Henry VIII’s financial legacy?
Debasement of the Coinage- short sighted method of raising money and large sums- leading to inflation and loss in confidence in currency, disrupting the economy and trade. 1/2 of the land was sold with no supplement of ordinary income. Debt- Henry borrowed heavily from abroad. Owed £100k to Antwerp money market.
How did Henry overspend his money?
Heavy expenditure which ordinary income didn’t meet. Dissolution of monasteries raised sums Cost from French and Scottish war
What were Almshouses?
For people who couldn’t work and to receive relief. There was a split in deserving and undeserving poor.
Who was William Paulet?
the Marquis of Wincester appointed Lord Treasurer in 1550- reforming taxes
What economic reform plans were put in place in 1551?
Ending of debasement Reduced expenditure so it matched income and allowed the King to ‘live his own’ To have His Majesty out of debt
How did Northumberland approach ending debasement?
Proclamations issued to reduce value of coinage in 1550 Northumberland told people to lower prices and trust the coinage without giving concrete reason
What happened to Antwerp market in 1551-52?
Collapse of Antwerp market in 1551-52, causing further issues, especially in cloth trade
How did Northumberland approach reducing domestic expenditure?
Commissions were established to inquire to state of finance and Wincester enforced stricter methods of accounting Emergency household fund established Needed to keep tight grip of finances- rewarded people with grants and sales of land Ordinary income didn’t increase.
How did Northumberland approach reducing foreign/ military expenditure?
Drastic reduction in military and house hold expenditure Boulogne returned to France for £133,33- garrisons were withdrawn from Scotland Expenditure of navy continued
When were debts at their worst?
In 1550= £300,000
How had the debts improved?
reduced from £300,000 (1550) to £180,000
When did Northumberland continue debasement up to? How much did it raise?
-Up to 1551 -£537,000
How much total money from debts owed to the government did they recover?
around £16,600
How did they handle paying off the Antwerp market?
Pay off with a negotiated 12%
How successful was Northumberland in handling the economy in only 2 1/2 years?
Improved government position and achieved his 3 initial objectives Ended debasement but didn’t take the needed measures to restore full confidence in the currency. Reduced government expenditure but was forced to compromise in order to reward his supporters Reduced the debts but weakened the governments long term financial position
