The American War of Independence-
(1776-1783), 1066 million livre spent, in the
short term worsening the already weak
financial situation of the crown.
Ideas such as liberty and democracy spread.
Financial Crisis
On 20th August 1786-
nearing bankruptcy, 112
million livre deficit in 1786.
Increased in 1788 to 126 million livre, anticipated that for
1780, interest payments of the deficit would amount to
62 per cent of receipts.
Economic
Crisis
The economy was largely based on agriculture,
therefore the bad harvests in 1778-9,
1781-2,1785-6 had a large impact.
In 1788-9 bread was 88 % of a
labourer's wage.
Textile production fell by 50% in 1789, largely affecting
women in rural areas .
Ordinary people accused land-owners and tithe-owners of grain
hoarding.
Politicisation of the
Third Estate came out of
the economic crisis.