As did the American Revolution, the French Revolution had its immediate origins in the government’s financial difficulties. The efforts of the ministers of King Louis XV (r. 1715–1774) to raise taxes to meet the expenses of the War of the Austrian Succession and the Seven Years’ War were thwarted by the high courts, known as the parlements. The noble judges of the parlements resented the Crown’s threat to their exemption from taxation and decried the government’s actions as a form of royal despotism.

When renewed efforts to reform the tax system similarly failed in 1776, the government was forced to finance its enormous expenditures during the American war with borrowed money. As a result, the national debt soared. In 1786 the finance minister informed the timid king Louis XVI that the nation was on the verge of bankruptcy. Fully 50 percent of France’s annual budget went to interest payments on the ever-increasing debt. Another 25 percent went to maintain the military, while 6 percent was absorbed by the royal family and the court at Versailles. Less than 20 percent of the national budget served the productive functions of the state, such as transportation and general administration.

Unlike England, which had a far larger national debt relative to its population, France had no central bank and no paper currency. Therefore, when a depressed economy and a lack of public confidence made it increasingly difficult for the government to obtain new loans, the government could not respond simply by printing more money. It had no alternative but to try increasing taxes. Because France’s tax system was unfair and out-of-date, increased revenues were possible only through fundamental reforms. Such reforms, which would affect all groups in France’s complex and fragmented society, were guaranteed to create social and political unrest.

Financial crisis struck a monarchy that had lost much of its mantle of royal authority. Louis XV scandalized the country with a series of mistresses of low social origins. To make things worse, he refused to take communion because his adultery placed him in a state of sin. The king was being stripped of the sacred aura of God’s anointed on earth (a process called desacralization) and was being reinvented in the popular imagination as a degenerate. Maneuverings among political factions at court further distracted the king and prevented decisive action from his government.

Despite the progressive desacralization of the monarchy, Louis XV would probably have prevailed had he lived longer, but he died in 1774. The new king, Louis XVI (r. 1774–1792), was a shy twenty-year-old with good intentions. Taking the throne, he is reported to have said, “What I should like most is to be loved.”1 The eager-to-please monarch Louis waffled on political reform and the economy, and proved unable to quell the rising storm of opposition.