Examine the role that the financial crisis played in the outbreak ofrevolution in France in 1789.

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Question: Examine the role that the financial crisis played in the outbreak of

revolution in France in 1789.

                                                        By: Sasha James.

The French revolution was a significant part of French, and European history. It was responsible for the end of the Ancien Regime, and the introduction of a more democratic government. While the financial crisis played an imperative role in the outbreak of the revolution, there were also other contributing factors.

The financial crisis played a crucial role in the outbreak of the revolution. The financial state of France before the revolution was detrimental. The total revenue for 1796 calculated by Calonne, the controller general of finances, was estimated to be 475 million livres, while the expenditure for was estimated to be 587 million livres. The economy of France was at a deficit.

There were many reasons for the deficit of the economy, with the main reason being the increase in state borrowings. These loans taken by the French incurred large annual interests and repayments that the treasury was obligated to pay. The debts that were acquired were so excessive that it cost almost half of the annual revenue.

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Another reason was that the French government borrowed money on terms less favourable that the British or Dutch because in France there was no publicly supported bank through which government credit could be cheaply channelled.

French kings had always spent too much on wars as in their participation in the Seven Years’ War and the American War of Independence. This sent the financial state of France into a deteriorating state.

Another reason was that there was no annual budget. The corruption of the independent financiers who handled the state’s finances was another factor to the financial crisis. This position ...

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