16th & 17th Century Spain: Economy, Society, and Culture

Economy and Society in 16th Century Spain

Throughout the 16th century, the Iberian Peninsula experienced demographic and economic growth. The population reached 8 million by the century’s end. Cereals and vines expanded at the expense of forests, while cattle remained central to the Castilian economy. Craft activities were limited. Demand for products increased, partly due to American colonists. The American conquest facilitated the exchange of agricultural goods, with gold and silver being the most significant riches extracted. This new territory became a major income source for Castile and the Crown. However, Spain missed out on the broader economic boom, beginning to lag behind countries like France, England, and Holland. War costs led to royal treasury ruin, debt, and increased fiscal pressure, damaging productive sectors. Economic growth also caused a dangerous price rise. By mid-century, the first signs of crisis appeared.

Society remained divided into the medieval tripartite estates: nobility, clergy, and commoners. A distinct noble group emerged: the Grandees of Spain, an elite established by Charles I. Their numbers grew over time, enjoying privileges and serving as military officers and diplomats. A requirement of purity of blood developed for accessing certain offices or institutions. This led to the rejection of practices vital for economic development and trade, deemed typical of Jews or conversos. While Protestant countries improved the perception of craftsmen and merchants, in Spain, these professions were considered incompatible with honor.

Culture, Mindsets, and The Inquisition

In 16th-century Spain, the Renaissance’s humanistic spirit transitioned to Counter-Reformation orthodoxy. Alongside artistic development, culture evolved from late medieval scholasticism to Renaissance humanism, influenced by Erasmus of Rotterdam and thriving in new universities like Alcalá de Henares and Salamanca. University student numbers grew. Charles I’s international politics and overseas expansion spurred interest in international relations, with Dominican Francisco de Vitoria emerging as a founder of international law. Gains also contributed to advancements in navigation, geography, and natural sciences.

However, the Protestant Reformation’s triumph in Europe led to a mindset shift, coinciding with Philip II’s accession. Spanish society became a rigid defender of Catholic orthodoxy. Spanish theologians at the Council of Trent, like Alfonso Salmerón and Melchor Cano, gained prominence. The Society of Jesus was founded, embodying the fighting spirit against Protestants and developing missionary work in America. The Inquisition became a tool against Protestantism. In 1553, the first Index of prohibited books was published, followed by censorship five years later. Any expression of heterodoxy could lead to imprisonment. In 1558, Seville and Valladolid saw Protestant outbreaks among intellectuals and nobles. Suspects were arrested, and leaders executed. Philip II attended an auto de fe in Valladolid to demonstrate his stance against Protestantism. Despite this, the Inquisition remained popular and appreciated across society.

17th Century Spain

Habsburgs, Valid Government, and Internal Conflicts

With Philip III, the practice of favor or delegating governance to a trusted valido began. While not an official position, the valido acted as a prime minister. Philip III’s valido, the Duke of Lerma, was a mediocre and ambitious politician who placed relatives and friends in key positions and persuaded the king to move the capital to Valladolid in 1600. His son, the Duke of Uceda, succeeded him but failed to solve Spain’s serious problems. The most notable domestic event during Philip III’s reign was the expulsion of the Moors in 1609.

In contrast, the Count-Duke of Olivares, Philip IV’s valido, possessed political acumen and a genuine desire for reform, though his major projects were unsuccessful. He initiated reforms to increase the monarchy’s resources and attempted to implement the Castilian political model across all territories. This proposal faced widespread rejection and significant clashes. These events highlighted the valido’s unpopularity, leading to his removal from politics in 1643, replaced by Don Luis de Haro. However, his fall did not restore social peace.

During the early part of Charles II’s reign, his mother, Mariana of Austria, acted as regent, trusting the government to the German Jesuit valido Nithard and later Fernando Valenzuela. Charles II’s first governor was Juan José of Austria, an enemy of the queen mother. Subsequently, the Duke of Medinaceli and the Count of Oropesa implemented a successful financial policy of tax cuts and spending restraint, ending the 17th-century crisis and laying the foundation for 18th-century recovery.