Colbert’ Economic Reforms and the
Legacy of Louis XIV
Colbert:
Colbert developed a system for the government to regulate the economy called mercantilism. This system was based on the idea that a country’s international power depended on the country being self-sufficient. To accomplish this, Colbert encouraged many new domestic industries (silk, cotton, etc.) and discouraged importing goods which would have but French money in other country’s coffers.
During Colbert’s tenure as the controller-general of France, he was responsible for the creation of a powerful merchant marine to ensure France’s exports were greater than its imports. These ships took finished goods to its new colonies around the world including Canada and the Caribbean and returned with raw materials to make more exportable goods.
French colonization was greatly encouraged by Colbert. However, these colonies were not encouraged to self-sufficiency rather they were potential markets for finished French goods and a source of raw materials. This lack of self-sufficiency would become an issue with the colonies later on.
Colbert’s domestic policy was to generate more money for the French treasury. To do this, he lowered income tax for the wealthy and increased indirect taxes on things like road tolls, milling and shipping taxes. This policy put the tax burden on the poor. Colbert’s reasoning was that if the rich had more money they would spend it on more French goods thereby helping the economy.
To promote trade internally, Colbert wanted to reduce internal tariffs (taxes). At the time, goods that traveled across zones in France would be subject to a tariff. By the time goods traveled the country they could be subject to 30-40 tariffs which made costs very high. However, many zones depended on the tariff revenue and most refused to reduce them.
The Palace of Versailles
Louis XIV created the palace as a symbol of his power as absolute monarch. Constructed outside of the town of Versailles, the palace took 20 years to complete and used the latest and most expensive styles. The palace contained marble and gold carvings, elaborate tapestries, manicured gardens and the latest sculptures and paintings. French artists and intellectuals were always welcome at the Palace.
Louis used this palace as a means of controlling higher level nobles. Other European countries envied the Palace and it was the goal of every French noble to live there which Louis used as a controlling tool. Nobles would surrender power to him for pensions or invitations to live at the Palace.
Louis XIV’s Legacy
By the time of Louis’ death in 1715 France was a powerful nation-state. The Catholic Church and the feudal nobles had surrendered most of their power to the monarchy. France was seen as the military and cultural leader of Europe and the people of France had a strong nationalistic pride. France also had developed a strong empire of colonies to use for resources and to sell its finished goods.
However, not all was perfect in France. One problem still cast a shadow over all the accomplishments of Louis XIV’s absolute monarchy: debt. The costs of maintaining a standing army, fighting wars, large pensions to nobles and the construction costs of the Palace of Versailles all but drained the French treasury. In addition, increasing the tax burden on the poor, the largest segment of the population would all lead to the toppling of the monarchy in the 18th century.