What were the causes for the empty treasury of France under Louis XVI?

Question

Philoid · Accepted Answer

The various causes for the empty treasury of France under Louis XVI were:

• Frequent wars resulted in the financial crisis.

• A large amount was also spent to maintain the court at the Palace of Versailles.

• Under the rule of Louis XVI, thirteen American colonies were helped to become independent from Britain, who was their common enemies. This resulted in the increase of almost a billion Livres (it was the unit of currency in France).

• Lenders who provided financial help to the state started charging 10 per cent interest on loans which resulted in the state paying more for the interest alone.

• Also, to maintain court, army, government universities and offices, the state forced to increase the taxes.