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Submitted by g0nads12 on April 18, 2005
Category: Philosophy
Words: 5784 | Pages: 24
Views: 451
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The French Revolution was one of the most traumatic events in human history. Over seven million people may have died as a result.
The immediate reason was the financial crisis caused by French support for the American Revolution. France invested 2 billion pieces of silver to win the war. Her tax system could only support the government during peace. A war called for extraordinary measures. This was the beginning of the first phase of the revolution, which is referred to as the Aristocratic Revolution. The aristocrats saw this crisis as an opportunity to reassert their power.
The French Finance Minister, Necker (1776-1781) didn’t use new taxation to finance the war, he borrowed the money. In 1781, he published the Compte Rendu – which was the first budget the people of France had ever seen. It showed a budget surplus of ten million pieces of silver and Necker was hailed as a hero of the Enlightenment throughout Europe. His budget, however, was a fabrication. France was actually 80,000,000 pieces of silver in debt.
When Calonne became finance minister in 1783, he found over half of France’s income went to pay the interest on the debt and the debt was increasing at the rate of 100,000,000 a year. Soon France would not be able to borrow any more money. She had to either repudiate the debt or find new taxes. Repudiating the debt was out of the question because governments have to be able to borrow money. They need to borrow to bridge the gap between the yearly arrival of tax revenues. The only course open was to find new taxation. The problem was who to tax? The peasants and artisans were already taxed to the limit. New taxes would have to be put on the aristocracy and the clergy. The Parlement registered new edicts and the nobility controlled it. The problem would be getting the taxes through the Parlement.
Calonne called together an assembly of notables in 1787, hoping to gain momentum for reform. The...
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