Why?
1)Expensive wars - France wanted to extend military domination over Europe therefore fought wars against Austria, Britain and the American war of independence, which left France in heavy debt. To survive France had to borrow money and therefore had to raise loans.
2)Extravagance of French court - Especially Marie Antoinette (e.g., buying 100 dresses a year)
3)Bad trading conditions - prevented economic progress - internal trade barriers (Octois) prevented expansion and trade
4) Revocation of edict of Nantes - ( Hugvends lived in walled cities to protect them from the Catholics) This revocation of freedom of religion led to exodus of thousands of hugvenots (Protestants) and this prevented growth of industry in France.
5)Weak financial System: tax exemption
-Those who could pay did not therefore France deprived of income.
-Tax Collection - Tax collectors corrupt and often pocketed parts of taxes.
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