Spanish economy

Question 1

Milliones tax

Answer 1

1590 a new tax on essential foodstuffs ‘millones’ was introduced and extended in 1596

Question 2

Tax increase between 1559 and 1598

Answer 2

430%

Question 3

Wage increase between 1559 and 1598

Answer 3

1559-1598 – average wages only increased by 80%

Question 4

Wool trade between 1556 and 1598

Answer 4

Trade: 1556 Spain exported wool to the Netherlands but this declined over time and between 1556 and 1598 the wool trade declined from an export of 400,000 sacks of wool each year to 25,000.

Question 5

Bullion

Answer 5

1550s- 200,000 ducats per year
• 1560s 800,000 per year
• 1590s 3.2 million per year

Question 6

Expenditure to Netherlands

Answer 6

Expenditure 1567-1600 80 million ducats sent to Netherlands alone

Question 7

Role of Juros

Answer 7

Philip relied on Juros – government bonds but these although giving him instant cash effectively mortgaged the future economy

Question 8

How much did the Armada cost

Answer 8

10 million ducats

Question 9

How much did the escorial cost to build

Answer 9

5.5 million ducats

Question 10

Debt and average annual income by 1598

Answer 10

Debt by 1598 87 million ducats but average annual income was 9.7 million

Question 11

Debt at the start of his reign compared to the end of his reign

Answer 11

Start = 30 million ducats
End = 87 million ducats

Question 12

Problems in the 1590s

Answer 12

Harvest failures in late 1590’s and increasing dependence on grain from Northern and Eastern Europe transported by English and Dutch ships