Phillip Finance and Economy Flashcards
how did crown income change?
crown income increased significantly
what was the difference in crown income over Philip’s reign?
1559 - 3 million
1590s - 10.5 million
how did taxation change?
tripled between 1559-77
what was the new tax he got from the church?
1567 excusado granted by papacy - made 270,000/year
how did cruzada increase?
doubled to about 200,000/year by 1590s
how did royal third increase?
800,000 ducats/year by 1590s
how much did the three graces bring in by 1590s?
- 1.4 million/year
- increased 4x
what tax did cortes agree to in 1590?
- millones tax
- 8 million ducats over 6yrs
- to pay for 1588 armada (cost 10 million)
what were the main mines Philip got silver from?
potosi, Zacatecas and Guanajuato
how did Philip get from quinto?
65m ducats of gold/silver over course of reign
how much did silver increase by over century?
by 1590s 12x more silver than at start of 16th C
what increased at a bigger rate than revenue?
spending
how did crown debt increase?
- inherited 36m ducats of debt
- 85.5m ducats of debt at death
how many times did Philip go bankrupt?
4x
in what years did Philip declare bankruptcy?
1557, 1560, 1575, 1596
why did the council of finance remain ineffective?
- a lot of members connected to bankers
- encouraged Philip to take loans
by 1600, how much money was spent on paying juros?
40% of income
what did Philip use that damaged finances?
short term expedients that caused long term problems
-e.g. juros and asientos
how did asientos increase between 1566 and 1567?
- 1566 - 21 asientos
- 1567 - 50 asientos
by 1598 how much was spent on interest?
4.8 million/year
how did spending on warfare increase?
1556 - spending than 2m ducats on war
1590 spending 10m on war
how much was spent on Dutch revolt over course of reign?
80m
which area of Spain was particularly prosperous and why?
seville due to new world trade
how did population increase in seville?
1530s - 50,000 people
1590s - 120,000 people
between 1562-1608 what increased by 176%?
number vessels to new world
between 1562-1608 what increased by 238%?
increase in tonnage
who was really benefiting from Seville
- foreign merchants
- Seville became European port driving European economy, not Castilian
why did Madrid’s economy improve?
was made capital
how did Madrid’s economy improve?
population more than doubled
what did increasing importance of Madrid mean for other towns ?
meant toledo and Valladolid became less economically important
why was there prosperity in Granada in 1560s?
prosperous leather and silk industries
how was Granda industry ruined?
Philip’s policy towards Moriscos
what did the Dutch revolt damage>
healthy trade between Spain and low countries
-e.g. 1567 yearly imports down from 40,000 -> 25,000
what did nobles have enough money to do?
stimulate industry but didn’t invest in Spanish industry
what did nobles prefer to invest in?
juros and new world silver instead of risk of investment in industry
which industry failed to bring the economic benefits it should have?
weapons industry as it was backwards
what % of firearms used to suppress Morisco revolt were foreign?
80%
how many artillery pieces of 1588 were made from Spanish copper or tin?
0/2400 and every cannonball had to be imported
what decision did Philip make in 1566?
decision that allowed Spanish merchants to take sliver out of Spain
what ducats of silver left seville in 1570?
7 milloin ducats
what caused rampant inflation?
silver influx and other factors
how did inflation affects Spaniards between 1530-1600?
spaniards could buy 20% less goods
what was the rate of inflation over 16th C?
400%
what did inflation cause?
poverty and less investment in industry
why was 1590s a crescendo of poverty?
high inflation
high taxation
little ice-age led to poor harvests
what did the cortes of Castile say in 1594?
‘the kingdom is wasted and destroyed’
between 1596-99, how did wages and wheat prices rise?
- wages rose 30%
- wheat rose 250%
