Accession Of Louis XVI

In 1774, Louis XVI ascended to the French throne at a time when the country’s finances were in disarray. The treasury was empty, partly due to France’s involvement in a series of expensive wars. Louis XVI’s extravagant lifestyle and the costs associated with maintaining the opulent Versailles palace further drained France’s financial resources.

Financial Dilemma And The American Revolution

Complicating matters, Louis XVI decided to support the American colonies in their war of independence against Britain. This decision added more than a billion livres to the existing debt of over 2 billion livres. France began to pay a high interest rate on its debt, leading to an unsustainable financial situation.

Taxation And The Estates System

To remedy the economic crisis, the government increased taxes. However, the tax burden was primarily borne by the third estate, consisting of commoners and peasants. In contrast, the first two estates, the clergy and the nobility, were largely exempt from paying taxes. This unfair system led to widespread discontent.

French Society: A System Of Inequality