why was there a severe financial crisis when king louis XVI came to power???
Answers
Answer:
there are several reasons behind it
Explanation:
1 because of long time of war
2 10% of interest loans
3 independence of 13 colonies of America from common enemy Britain
4 maintainaince of the palace of Versailles
Answer: Upon his accession, Louis XVI found an empty treasury.
1. Long years of war had drained the financial resources of France.
2. Added to this was the cost of maintaining an extravagant court at the immense palace of Versailles.
3. France helped the thirteen American colonies to gain their independence from the comman enemy, Britain.
4. The French Government was obliged to spend an increasing percentage of its budget on interest payments alone.
5. To meet its regular expenses, such as the cost of maintaining an army, the court, running government offices or universities, the state was forced to increase taxes.
6. Yet even this measure would not have sufficed. French society in the 18th century was divided into three estates, and only members of the third estate paid taxes.
Source: NCERT
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