Compare and contrast the economic factors responsible for
the decline of Spain with the economic factors responsible
for the decline of the Dutch Republic by the end of the
seventeenth century.
By: David Hwang
Period 4
Thur. 9/22
Spain
• Spain developed an absolutist government
due to their strong relations with the church
• Religiously intolerant
• Strongly Catholic
Economic
• Spain gained a large amount of its income due
to slave labor in mines
• Lack of middle class led to domination of the
social-political structure by the aristocracy
• Public opinion of making money was socially
condemned
• Large amounts of bullion cause severe
inflation
Reason For Failure
• Severe inflation lacked impact on the
aristocrats who continued their lavish
lifestyles
• Attempted war to get rid of debt
• Expelled many of their economic supporters
due to religious intolerance
• Lacked a solid source of income
• Lack of strong central government
Dutch
• Was experiencing a “golden age” due to the
Peace of Westphalia allowing for development
• Was a Confederation
• Practiced religious toleration
• Fishing and trading were prime exports
Economic
• Had a strong fiscal standpoint in trade
• Attracted a great deal of foreign capital and
investment
• Had one of the first banks(bank of
Amsterdam)
• Dutch East India Company allowed Dutch
prestige in commerce and trade
Reasons for Failure
• Involving itself in war with the English and
French proved detrimental toward the Dutch
economy
• The war of Spanish Succession led to little gain
for its great cost
Compare and Contrast
Spain
• Compare
• Both got economically
powerful
• War contributed to downfall
• Economic downfall at
economic high points.
• Contrast
• Inflation caused economic
difficulty.
• Aristocracy made it a bad
social thing to getting money.
Dutch
• Compare
• Both got economically
powerful
• War contributed to downfall
• Economic downfall at
economic high points
• Contrast
• Allowed Jews
• Fishing and trade was major
source of income.