Financial Problems and Reforms Flashcards
1
Q
Why was the existing tax system inefficient and ineffective?
A
- Tax farming - the Crown never got enough money
2. Tax exemptions for the richest
2
Q
What was the deficit and debt in 1774?
A
Deficit - 37,000,000 livres
Debt - 235,000,000 livres
3
Q
When was Turgot in charge of finances?
A
1774-76
4
Q
What did Turgot attempt to do?
A
- Wanted a freer economy
- Abolished price controls - led to riots as the price of bread rose
- Wanted to reduce restrictions on trade by guilds
- Wanted to promote enterprise
5
Q
Why was Turgot sacked?
A
He fell foul of important people at Court such as the Queen
6
Q
When was Necker in charge of finances?
A
1776-81
7
Q
What did Necker attempt to do?
A
- Aimed to increase royal revenue rather than focus on the whole country
- Borrowed even more money to pay off existing debts and be left with less interest to pay
- Gained the confidence of lenders by publishing the ‘Compte Rendu’ in 1781, which lied about a surplus in the royal treasury
8
Q
Why did Necker resign?
A
He resigned after trying to publish courtiers’ wages
9
Q
When was Calonne in charge of finances?
A
1783-86
10
Q
What did Calonne attempt to do?
A
- Aimed to balance the King’s books
- Proposed an end to internal customs
- Proposed a new land tax with no exemptions
11
Q
Why was Calonne sacked?
A
The Assembly of Notables rejected the new tax
