Skip to main content Accessibility help
×
Hostname: page-component-848d4c4894-p2v8j Total loading time: 0.001 Render date: 2024-05-17T20:37:56.473Z Has data issue: false hasContentIssue false

4 - The financial crises of the Monarchy

Published online by Cambridge University Press:  28 August 2009

Franz A. J. Szabo
Affiliation:
Carleton University, Ottawa
Get access

Summary

At the heart of the structural changes of the Habsburg central and local administration under Maria Theresia lay an economic, or more precisely, a fiscal imperative. Governments in the ancien régime often seemed in a state of permanent penury, leading a hand-to-mouth existence from one financial crisis to another. Waging costly foreign policies motivated by baroque dynastic self-images and mercantilist concepts of international rivalry, governments found that their expenditures were regularly in excess of revenues. The more dramatically dynastic pretensions surpassed the capacity of the respective societies to uphold them – as was the case in the Habsburg conglomerate under Charles VI – the more drastic these fiscal crises became. Since the full mobilization of the state's economic resources in a modern fashion was beyond dynastic governments still encumbered by various feudal contracts and obligations, their prime recourse was to taxes and loans, the raising of which was subject to its own unique difficulties. Securing adequate revenues in the face of these limitations was therefore an ever-present concern. In short, social and political conditions dictated a sort of fiscal obsession.

It did not escape the attention of early modern governments and economists that these fiscal anxieties were ultimately dependent on the strength of the overall economy as much as on their ability to tap these resources. Mercantilists had developed a considerable body of economic theory designed to promote the expansion of the state's commercial and industrial base within a broader ideal of autarky.

Type
Chapter
Information
Publisher: Cambridge University Press
Print publication year: 1994

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

Save book to Kindle

To save this book to your Kindle, first ensure coreplatform@cambridge.org is added to your Approved Personal Document E-mail List under your Personal Document Settings on the Manage Your Content and Devices page of your Amazon account. Then enter the ‘name’ part of your Kindle email address below. Find out more about saving to your Kindle.

Note you can select to save to either the @free.kindle.com or @kindle.com variations. ‘@free.kindle.com’ emails are free but can only be saved to your device when it is connected to wi-fi. ‘@kindle.com’ emails can be delivered even when you are not connected to wi-fi, but note that service fees apply.

Find out more about the Kindle Personal Document Service.

Available formats
×

Save book to Dropbox

To save content items to your account, please confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your account. Find out more about saving content to Dropbox.

Available formats
×

Save book to Google Drive

To save content items to your account, please confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your account. Find out more about saving content to Google Drive.

Available formats
×