Economic Hardship

Economic hardship played a significant role in the events leading up to the French Revolution. The financial strain on French society was a result of several factors, including the country's substantial debt and poor economic policies. By the late 18th century, France found itself in an untenable financial situation, exacerbated by costly involvement in the American Revolutionary War (1775-1783) and King Louis XVI's extravagant spending.

Taxes imposed by the monarchy fell disproportionately on the Third Estate (which consisted of commoners) while the clergy and nobility enjoyed numerous exemptions. This imbalance burdened the peasantry and urban workers, who were already struggling with high costs of basic necessities. The rising price of bread, a staple for the French population, led to widespread unrest and contributed to the sense of economic injustice.

Agricultural failures and poor harvests in the late 1780s further deteriorated the economic situation. A series of harsh winters and severe droughts caused food shortages, leading to famine in several regions. The food scarcity not only escalated the already high bread prices but also fueled public dissatisfaction with the monarchy and its policies.

Inflation also played a critical role in exacerbating economic hardships. As prices for goods and services increased, wages remained stagnant, severely diminishing the purchasing power of common laborers and peasants. This economic disparity highlighted the growing divide between the wealthy elite and the struggling lower classes. Additionally, the inefficient and regressive tax system made it nearly impossible for the government to collect sufficient revenue to manage the nation's debts and expenses.

The efforts of Charles Alexandre de Calonne (the Controller-General of Finances) to reform the financial system in the mid-1780s faced considerable opposition from the privileged classes. His proposals included a comprehensive land tax that would extend to all property owners, including the nobility. However, the proposed reforms were blocked, leading to a further deterioration of the fiscal crisis.

The widespread economic hardship also had international dimensions. Due to protectionist tariffs and trade restrictions, France's economic isolation hindered the growth of commerce and industry. The internal market was hampered by a network of guilds and monopolistic practices that limited competition and innovation.

The systemic economic failures and the subsequent social unrest created a fertile ground for revolutionary ideas to take root. The calls for financial reform, equitable taxation, and an end to feudal privileges became rallying cries among the increasingly discontented population. Economic hardship was thus a key factor in mobilizing support for the revolutionary movement and in shaping the course of the French Revolution.

• The economic hardship in France was exacerbated by a series of poor harvests in the years leading up to the revolution, particularly the bad wheat harvest of 1788, which caused bread prices to soar by 88% in just one year.
• In Paris, the price of bread was so high that it accounted for approximately one-third of a laborer's wages, leading many to starvation and contributing to the growing unrest against the ruling classes.
• On 5 May 1789, the Estates-General was convened to address the financial crisis; however, the Third Estate, representing the common people, grew frustrated and ultimately declared itself the National Assembly, signaling the birth of a revolutionary movement.
• France's involvement in the American Revolutionary War (1775-1783) left the nation deeply in debt, with loans taken out to support the colonies totaling around 1 billion livres, which further strained the national economy.
• Taxation was highly unpopular and inequitably distributed, as the nobility were largely exempt from many taxes, leading to feelings of resentment among the increasingly burdened commoners who bore the brunt of the financial strain.