Process
Status Items Highlights Done See section below Claims None Questions None Output None
Highlights
Time 0:09:58
Necker’s Successor and Financial Trouble
- Necker was succeeded by Jean-François Joly de Fleury, who came from an anti-Enlightenment family.
- Fleury quickly realized the dire financial situation and said, “Holy crap. We have got to raise taxes.”
- He managed to push through a new tax, but it was only enough to cover interest payments on existing loans, forcing him to borrow even more money. Transcript: Speaker 1 Necar was succeeded by a guy, jean francois joli de flori, who was far more conservative in his outlook. Coming from a staunchly anti enlightenment family, he’s not of major importance, and his name will not be on the test, but he was the bridge between necare and calogne. And so i have to mention that flori took one look at the books and said, holy crap. We have got to raise taxes. And thanks to his long standing connection to the parliament, he was able push through a third vatiem that would run through 17 86, whut the additional money raised was only going to Cover interest payments on all the previous loans. So just to keep going, florie had to borrow even more money and then go back to selling venal offices, a practice that had been slowly racheted down by previous ministries. Given what he had to work with, flori’s days were always numbered. I mean, howd yo ask courtiers and minister to cut back on spending and submit to new taxes when the comterondu is sitting on their desk telling them that everything is fine. He finally called at quitz in march 17 83, just as negotiations to end the american war were getting under way. Fleri was succeeded by a guy whose name will absolutely be on the test charles alexandre de calon. Because it will be calon who will spark these so called pre revolution when he finally gives up the ghost and says, it’s either major reforms or the kingdom collapses. Those are your options. Unfortunately,
Time 0:12:10
Calonne’s Spending Strategy
- Charles Alexandre de Calonne became Controller General of Finances in November 1783.
- He believed the best way to get out of debt was to spend more money, a concept called “useful splendor.”
- His plan involved borrowing more, hoping new loans at lower rates would eventually pay off higher-rate loans.
- Instead of cutting spending, he increased it at Versailles to reassure creditors of the monarchy’s financial health, making royal loans seem like safe investments.
- This strategy temporarily worked, securing hundreds of millions of livres in new debt, but doubts persisted. Transcript: Speaker 1 With the help of foreign minister virgen, who was, by now, louis most trusted adviser, cologne was brought into service controller general of finances in november 17 83. And he brought with him the rather novel idea that the best way to get out of debt was to spend more money. Now this is crazy, of course, and it didn’t work. But cologn did have a plan. Like his predecessors, tergo and nekar colone, believed that raising taxes was, at least for the moment, a political non starter. His immediate predecessor, flori, had pushed the limits of the nobility’s patience by initiating the third vatim anything more would require a concerted royal push that the ministry Did not have the stomach for, especially since it might eventually involve recalling the estates general, which was a sure fire way to completely lose control of the situation. So calon decided that the only way out was to keep borrowing and hoped that maybe in time, new loans taken at lower rates would pay off the loans with the higher rates, and then they could Start getting ahead of this thing. So instead of cutting back spending at versailles, calogne conspicuously jacked it up, the idea being that if creditors saw that the monarchy was spending lavishly, they would be Assured that the king was in good shape and see more royal
Time 0:14:23
Financial Crisis Inevitable
- Controller General Calonne initially tried to solve France’s debt by increasing spending, hoping to attract more loans.
- This strategy failed, and Calonne discovered the crown was facing a massive deficit, exceeding 100 million livres annually.
- He realized that nearly half of the annual revenue would soon be consumed by debt servicing.
- This revelation forced Calonne to confront the unavoidable financial crisis, leading him to develop a comprehensive reform plan. Transcript: Speaker 1 This was a grind the wheels to a halt. Revelation. Calogne realized that there could be no more tricks, no more kicking the can down the road. The crisis everyone had been trying to avoid for the last cade was finally upon them. And so he retired to his offices and started drawing up a plan to completely overhaul the crown’s finances, a plan that would touch on almost every part of the ensien regime,