Setting the Stage: France was one of the most powerful countries in the world during this time period (1780’s). France was ruled by King Louis XVI and had been ruled be a monarchy for centuries. The king was a tyrant that oppressed the people and threw them in jail for disagreeing with them. The third estate was being taxed way too much. People were starving because they were so poor. People were being attacked because there wasn’t adequate protection. France’s Financial Crisis France as a country was prosperous, but it was running a debt because of the cost of maintaining the royal family at Versailles. King Louis XVI Marie Antoinette Marie Antoinette spent 100,000 livres a year on clothing, the average peasant made 500 livres a year. By 1789, the government used 50% of its budget to pay off debt, 13% of the budget went to pay for the royal family and its household staff of 15,000 people. King Louis XVI needed money, but from where. Reasons For Financial Crisis • • • • War Debt (American Revolution & 7 Years King and Queen spending too much Bad weather causing a shortage of food Large % of money going to pay off loans The Old Regime 1st Estate 2% of pop. Owned 35% of land 1% pop. Owned 10% of land, Roman Catholic clergy, collected 10% tax (tithe) 2nd Estate Nobleman, Military leaders, government officials Collected feudal dues, taxes and rent from the peasants. 3rd Estate Doctors, lawyers, merchants, middle class, known as the bourgeoisie 97% of population, paid all taxes Laborers who lived in cities with families, low wages Peasants- Owned 40% of land, but very poor. Paid taxes, feudal dues and tithes. Also had to do gov. work without pay.