House of Cards

The Collapse of the Ancien Regime

The Rise

The 30 Years War ended with France one of the dominant powers on the continent.

France was poised to rule the world: it had a large army, ample resources and a strong centralised government under the Bourbons or administrators such as Cardinal Richelieu.

However, even as they consolidated their position in Europe it was slipping from their grasp.

Changes in France

France, as with other parts of Europe, was experiencing changes. The population was around 26 million people

X 2 the population of Spain X 3 the population of England

Between 1701 – 1800 France’s population rose 44% (16 million – 26 million)

State funded industrialism through Mercantilism created industries that boosted the standard of living for most Frenchmen. The rate of growth was only a fraction of the British rate of industrialism.

Political Changes

Ideas of the Enlightenment took root over the 18th century. In the process the ideas became more

polarised and radicalised. The American Rebellion (1774 - 1783) served

as an example for elements of French society. Thomas Paine – “root and branch change”

Festering sores

Despite the positive changes in France it was negated by France’s disasterous foreign policies. In order to de-stabilse nations like England the French

governments paid huge subsidies to rebels and nobles. The French government built expensive works for little

return Louisbourg Palace of Versailles

Fought for the wrong sides Throughout the 1700s, the French fought – and lost,

and lost, and lost. These policies served to collectively undermine the

successes that might have been enjoyed.

The Flashpoint

The French had backed the American rebels against the British. The effort was expensive in terms of money. The French got nothing from the expense accept the joy of seeing the British being ground down to a stalemate.

Starting in the 1770s, the King’s finance minister (Comptroller General) warned of a need to make tax reforms. The system of taxes was inefficient and had too many

loopholes for those who had the wealth – nobles and the church.

The three estates

The Three Estates First Estate: The Clergy

Represent 1% of the nations population Owned 15% of the land worth approximately 60 million dollars (1700s

value). From this income they gave gifts of c. 1 million dollars. (should pay c.

10 million) Second Estate: The Nobility

Represent 1.5 % of the nations population Four classes;

Nobles of the Sword – old families Nobles of the Robe – judges and administrators Nobles of the Bell – municipal officials Anoblis – people who buy titles (king’s sock holder)

Third Estate: Everyone Else Represents 98% of the population

Was not uniform or united: Bourgeoisie, Landed peasants, city workers, farmers

Taxes!!!!!

While the first and second estates represented 2% of society, they represented the majority of the nation’s wealth.

The system of collection was based on tax farmers: people / officials who paid for the privilege to collect it. In return they were “allowed” to skim from the top.

The average Frenchmen paid a number of taxes to the state, the noble, and the church.

State

Taille: on income / property Vingtiemes: 1/20th surcharge on income Capitation: head of households

On top of this were indirect taxes and the Corvee which was organised labour in the name of the king.

Nobles

The nobles had by the 1700s dismantled the formal system of feudalism. But the nobles still had the power to levy taxes

on the peasants who rented land from them. This was usually in the form of crops.

Church

The church generated money through ownership of farms and property on which it collected rent. All of it tax free.

The church also had the right to demand a tax directly from the people.

Tithe: 3 – 8% of crop or income. Most peasants did not mind this tax accept

that the money often did not stay in the community with the local priests.

The End of the Game

The disasterous and expensive wars forced the French government to borrow heavily against future income. After 20 years of this kind of fiscal policy no

one wanted to lend the king money anymore. Almost 50% of taxes collected went to pay the

interest alone. National debt of 4 billion livres. (c. 30 billion dollars in

today’s currency) The king tried to find new ways to pay the debt

down enough to float more loans.

Comptroller General Jacques Necker

In charge 1776 – 1781 He played a shuffling game to keep cash

flowing to fund the American Rebellion Asked for sweeping powers to reform the tax

farming system. He crossed Marie Antionette over the

publication of pensions given to the royal court.

She led the move to fire him – Louis agreed.

Comptroller General Charles Alexandre de Calonne After a two year term by a non entity he took

office. 1783 – 1787 He tried to keep things afloat but ran out of

options by the late 1780s He decided he needed to tax the church and

the nobles – they were not amused.

The Nobles Rebel

In order to get the reforms to tax the rich, Calonne asked the king to call together handpicked group of nobles to rubber stamp his decrees.

The king selected his “Assembly of Notables” Met in February 1787

They immediately attacked Calonne’s reforms Calonne fled the country The nobles demanded the king listen to their complaints in

the traditional form of governance Blocked Calonne’s successors effort to reform but pushed

that only a national body had the authority to approve the reforms being sugested.

Estate General: hadn’t been formed since 1614.