Economic Conditions in France Before 1789

Economic Conditions in France Before 1789

• France's economic condition declined due to foreign wars under Louis XIV and Louis XV, including the Seven Years' War, along with other costly conflicts.
• The royal treasury was depleted during Louis XVI's reign due to extensive wars, the maintenance of the Palace of Versailles, funding the American Revolution, and Marie Antoinette's spending.
• War expenses were covered by borrowing.
• The taxation system of the Ancien Régime was used to cover these debts.
• The first and second estates were exempt from taxation.
• Wealthy merchants of the third estate could avoid taxes by buying their way into the second estate.
• This meant a big portion of the wealthy population did not contribute to the country's finances.
• By 1786, government debt exceeded foreseeable income.
• The need for funds was tied to the need for social and economic reform.
• King Louis XVI appointed finance ministers to address the nation's economic issues.

Turgot's Reforms

• Appointed as finance minister in 1774, Louis XVI appointed Turgot to improve the French economic situation.
• Turgot advised the king to tax every class.
• Turgot recognized the corruption and unfairness of the taxation system.
• Turgot attempted to control government spending, waste and corruption.
• He wanted to replace existing taxes with a uniform land tax, including taxing property owners.
• Taille, a direct land tax, was traditionally levied on the peasantry and non-nobles, excluding the clergy and nobles.
• Turgot aimed to introduce free trade in grain and abolish noble privileges.
• Turgot was pushed out of his position due to opposition from Marie Antoinette and noblemen.

Jacques Necker's Financial Role

• Jacques Necker (1732-1804) was a French minister of finance.
• Necker was recruited by Louis XVI in 1776 and appointed director-general of finance in June 1777.
• Necker attempted minor reforms and kept the economy afloat with foreign loans.
• Necker published Compte Rendu in February 1781, a financial report suggesting France had less debt than reality; war costs were excluded.
• This was done to build the public's confidence in the monarchy and allow for new loans to fund involvement in the American War of Independence.
• Government debt increased as income stagnated, causing increased taxation.
• France fell into a financial crisis.
• Necker tried to revitalize the economy by reducing war expenses but faced interference from other ministers.
• Necker made the country's budget public in 1781.

Necker's Popularity and Dismissal

• The Compte Rendu sold thousands of copies and was translated into multiple languages.
• Necker gained popularity among the third estate due to his commoner background.
• He understood French citizens' concerns about fair taxation of the 18th century.
• Necker was sympathetic to the Third Estate.
• Marie Antoinette and the King were unhappy with Necker’s publication of the accounts.
• Necker was dismissed on July 11, 1789, but quickly recalled due to public reaction.
• He resigned in September 1790 after encountering opposition to his tax reforms.

Charles de Calonne's Financial Role

• Charles de Calonne (1734-1802) was a royal minister in the late 1780s.
• Louis XVI appointed Calonne as finance minister in 1783, when the nation’s debt was at its limits.
• Calonne informed Louis that France was facing financial collapse.
• He believed Compte Rendu worsened France’s situation by creating the appearance of a surplus.
• Calonne proposed cuts to government spending, abolished the Corve Royale (unpaid labor), and encouraged free trade in grain.
• He recommended taxing all land, eliminating exemptions for the First and Second Estates, but anticipated resistance.
• The king convened the Assembly of Notables in February 1787 and November 1788.
• The Notables rejected Calonne’s reforms.
• Calonne sought public support by releasing information about the fiscal crisis, infuriating the Notables and the king, leading to his dismissal.

Political Conditions and the Age of Enlightenment

• The political discontent of France contributed to the revolution.
• Criticism of the government resulted in imprisonment without trial.
• French society operated under the Estates System, a structure left over from feudalism that dictated a person's rights and status.
• The French Revolution was inspired by the Enlightenment, or ‘Age of Reason’, an intellectual movement that defied traditional thinking and promoted revolutionary ideas.
• The Enlightenment started in Western Europe in the mid-1600s and continued until the late 18th century.
• It was driven by skepticism, intellectual curiosity, and a desire for social and political progress.
• Enlightenment thinkers challenged existing knowledge, sought new information, and aimed to improve understanding of humanity.
• Before the Enlightenment, knowledge was derived from religious teachings.

Enlightenment Values and Philosophers

• Enlightenment thinking emphasized reason and logic.
• During the 18th century, France was regarded as a leader in European culture and style.
• The Enlightenment emphasized human reason as a guide for government and society.
• Enlightenment writers, known as philosophers, believed in human control over one's own destiny.
• They questioned the Church and the king's role, promoting human responsibility for improving life and the idea of a social contract.
• Philosophers believed in the use of reason and common sense to promote human progress and happiness.
• The philosophers questioned the nature of humanity, criticizing the divine right of kings.
• In their view, government was created to protect individual rights.
• Rousseau's idea of a 'social contract' argued against political power coming from God.
• Government's role was to protect and secure individual rights.

French Enlightenment Figures

• The Enlightenment took shape in France in the early 1700s.
• French Enlightenment philosophers included Denis Diderot, Jean-Jacques Rousseau, Baron de Montesquieu, and Voltaire.
• These philosophers focused on improving government and creating a society based on reason, logic, and merit.
• Montesquieu advocated for the separation of powers, drawing inspiration from the British political system to avoid tyranny.
• Voltaire praised England's democratic processes and freedom of speech after spending three years in exile there.
• The Enlightenment created an environment for questioning the old order in all aspects of life.
• The Bourbon kings were no longer seen as God’s representatives.

Renaissance Ideals

• New ideas included renaissance, scientific thinking, humanism, the idea of liberty and equality, and the idea of the consent of the governed.
• Humanism values human nature and actions.
• The Enlightenment emphasized reason for human progress and stressed equality and justice.
• Renaissance (14th-17th centuries) was a cultural movement meaning "rebirth".
• Renaissance thinkers started focusing on humanity and less on religious themes.
• The Enlightenment followed the Renaissance, which placed humanity at the center of philosophical discussions.
• Democracy and individual rights were core Enlightenment themes.
• Enlightenment focused on "reason" and "liberty," including freedom from religion.
• American revolutionaries implemented Enlightenment ideas in the Declaration of Independence and the U.S. Constitution.
• Consent of the governed contrasts to the divine right of kings.

Key Enlightenment Thinkers

• Philosophes shaped the French Enlightenment during the 18th century.
• Key philosophes included Baron de Montesquieu, Voltaire, Jean-Jacques Rousseau and Denis Diderot.
• Montesquieu (1689-1755) was a French judge, writer, and political philosopher.
• His theories on the separation of powers were implemented in many constitutions.
• Montesquieu published "The Spirit of Law" in 1748, influencing the Founding Fathers of the United States.
• Montesquieu's early writings supported constitutional monarchy.
• Montesquieu argued for dividing government into three branches: executive, legislative, and judicial, with checks to prevent tyranny.
• "The Spirit of the Laws" was influential in Europe and impacted the American and French Revolutions.
• Separation of powers involves dividing government responsibilities into distinct branches to prevent the concentration of power in any one branch.
• Voltaire (1694-1778) was the pen-name of François-Marie Arouet, an Enlightenment philosopher and critic of the Ancien Régime.
• Voltaire’s writings shaped revolutionary ideology.
• Voltaire criticized the church and the Ancien Régime.
• He was exiled to England in 1726.
• He praised British government and society upon his return.
• Voltaire accepted the existence of God but opposed religious dogma, superstition, and the divine right of kings.

Rousseau's Impact

• Jean-Jacques Rousseau (1712-1778) was an Enlightenment writer who shaped the French Revolution.
• Rousseau articulated the concept of Civil Equality.
• Rousseau introduced the 'social contract' between government and individuals.
• Rousseau articulated the concept of popular sovereignty, arguing that government power comes from the consent of the people.

Assembly of Notables and Estates-General

• The Assembly of Notables was an ancient council of high-ranking nobles and clergymen summoned by the king in times of crisis.
• The king called the Assembly of Notables for advise from Charles De Calonne, his finance minister.
• Calonne sought the Notables' support for his reforms, but they were uncooperative, leading him to seek public support.
• The Estates-General was a representative assembly of the Ancien Régime, since the 15th century and until the 18th century.
• It consisted of representatives from all Three Estates and played a role in the revolutionary events of 1789.
• The Estates General was supposed to advise the king.
• The Estates-General had not been convened since 1614.
• Louis XVI called a meeting in 1789 to address France's financial crisis.
• The assembly included the First Estate (clergy), the Second Estate (nobility), and the Third Estate (commoners).
• Voting at the Estates General was traditionally conducted by estate, with each estate casting one vote.
• The Third Estate wanted financial equality and the abolition of feudal rights.
• Louis XVI doubled the number of seats for the Third Estate.
• Key figures included Abbé Sieyès, who wrote "What is the Third Estate?", and Maximilien Robespierre.
• Grievances from the third estate included inequality and taxation without consent.

Cahiers and Abbe Sieyes

• Cahiers de doléances were lists of grievances from each Estate in France in 1789.
• These listed were used to inform discussion surrounding governmental reform.
• Abbe Sieyes wrote the pamphlet, "What is the Third Estate?"
• He argued that the Third Estate was everything yet counted for nothing.
• Sieyes felt the Third Estate should make a new constitution.
• Necker advocated for the Estate but the king was unsure how to act.