page_title: French Revolution
section_title: Economic policies
hierarchical_section_title: French Revolution / Economic policies
caption_attribution_description: 500 Livres 1790 averse = uni
context_page_description: The French Revolution was a period of social and political upheaval in France and its colonies beginning in 1789 and ending in 1799. The Revolution overthrew the monarchy; established a republic; catalyzed violent periods of political turmoil; and finally culminated in a dictatorship under Napoleon, who brought many of the revolution's principles to areas he conquered in Western Europe and beyond. Inspired by liberal and radical ideas such as equality before the law, the Revolution influenced the decline of absolute monarchies while replacing them with republics and liberal democracies.
  The causes of the French Revolution are complex and are still debated among historians. The American Revolution helped set the stage for the events of the French Revolution, having shown France that a rebellion based on Enlightenment principles, including natural rights and equality for all citizens, against an authoritarian regime could succeed. German diplomat Friedrich von Gentz observed in a treatise published in France in 1800:
context_section_description: The French Revolution abolished many of the constraints on the economy that had slowed growth during the ancien regime. It abolished tithes owed to local churches as well as feudal dues owed to local landlords. The result hurt the tenants, who paid both higher rents and higher taxes. It nationalised all church lands, as well as lands belonging to royalist enemies who went into exile. It planned to use these seized lands to finance the government by issuing assignats. It abolished the guild system as a worthless remnant of feudalism. It also abolished the highly inefficient system of tax farming, whereby private individuals would collect taxes for a hefty fee. The government seized the foundations that had been set up (starting in the 13th century) to provide an annual stream of revenue for hospitals, poor relief, and education. The state sold the lands but typically local authorities did not replace the funding and so most of the nation's charitable and school systems were massively disrupted.
  The economy did poorly in 1790–96 as industrial and agricultural output dropped, foreign trade plunged, and prices soared. The government decided not to repudiate the old debts. Instead it issued more and more paper money (called "assignat") that supposedly were grounded seized lands. The result was escalating inflation. The government imposed price controls and persecuted speculators and traders in the black market. People increasingly refused to pay taxes as the annual government deficit increased from 10% of gross national product in 1789 to 64% in 1793. By 1795, after the bad harvest of 1794 and the removal of price controls, inflation had reached a level of 3500%. The assignats were withdrawn in 1796 but the replacements also fuelled inflation. The inflation was finally ended by Napoleon in 1803 with the franc as the new currency.
  Napoleon after 1799 paid for his expensive wars by multiple means, starting with the modernisation of the rickety financial system. He conscripted soldiers at low wages, raised taxes, placed large-scale loans, sold lands formerly owned by the Catholic Church, sold Louisiana to the United States, plundered conquered areas and seized food supplies, and levied requisitions on countries he controlled, such as Italy.
caption: Early Assignat of 29 September 1790: 500 livres
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