Recap:
Political and Financial Crisis
- Louis XVI became king in 1774 at age 20.
- He was married to Marie Antoinette, an Austrian princess.
- He inherited an empty treasury.
- Long years of war had drained France’s finances.
- Maintaining the court at Versailles added huge expenses.
- France supported the American War of Independence, increasing debt.
- National debt exceeded 3 billion livres.
- Lenders charged about 10% interest on loans.
- A large part of the budget went to interest payments.
- The state tried to increase taxes to meet expenses.
Social Structure (Old Regime)
- French society was divided into three estates.
- This system was part of the feudal system (Old Regime).
- Only the Third Estate paid taxes.
- Peasants formed about 90% of the population.
- Only a small number of peasants owned land.
- About 60% of land was owned by nobles, Church, and rich elites.
Privileges and Exploitation
- Clergy and nobility enjoyed privileges by birth.
- They were exempt from paying taxes.
- Nobles collected feudal dues from peasants.
- Peasants were forced to provide labour and services.
- The Church collected tithes (1/10 of produce).
- The Third Estate also paid taille (direct tax) and indirect taxes.
- Thus, the entire tax burden fell on the Third Estate.
Economic Hardships
- Population grew from 23 million (1715) to 28 million (1789).
- Food demand increased but grain production did not keep pace.
Crisis and Social Change
- Bread prices rose sharply while wages remained low.
- The gap between rich and poor widened.
- Natural calamities led to frequent subsistence crises.
- A middle class emerged (merchants, lawyers, officials).
- They believed in merit, equality, and end of privileges.
Intellectual Influence
- Thinkers like John Locke rejected absolute monarchy.
- Jean-Jacques Rousseau proposed the social contract.
- Montesquieu suggested separation of powers.
- These ideas spread through salons, books, and newspapers.
- News of new taxes created anger and protest against privilege.