Thursday, August 18, 2011

Economic Causes

Money
  • The standard currency was the livre.
     
  • It was printed as paper money at this time.
     
  • A farm labourer would earn 1 livre for 1-2 days work.
     
  • 1 livre = 3 pounds of butter, 2 geese or a bushel of rye.
     
  • Rent for an average farm was 500 livre per year.

Tax System
  • Chaotic and inefficient. 
     
  • Main tax, called the taille, fell mostly on the third estate. 
     
  • Peasants in particular were burdened. 
     
  • Indirect taxes targeted food, salt and even goods entering a town. 
     
  • Taxes were collected by tax farming which reduced the tax take. 
     
  • This caused resentment and deficit. 
     
  • So, King Louis XVI borrowed more money.

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