17th Century Crisis in Spain: Economic, Social, and Political Turmoil
ITEM VII: The Crisis of the Seventeenth Century
1.1. Depopulation and Economic Crisis
In much of Europe, especially in Mediterranean countries during the seventeenth century, there was a huge demographic, economic, and social crisis. This crisis led to great unrest among the population and political instability that affected the monarchy.
a) The Population Crisis
Throughout the seventeenth century, the population stagnated. Castile was more affected than the periphery, particularly the central nucleus of the plateau. The most intense crisis period was from 1630 to 1680. Factors contributing to this zero growth were:
- The successive crises of subsistence, poor harvests, and hunger, hampered by the constant wars that impeded imports.
- Epidemics, favored by malnutrition. The plague reappeared.
- The wars: between 1640 and 1668 wars were permanent. The lack of mercenaries forced recruits into rebellions, impacting the young population.
- Expulsion of the Moors, about 300,000 between 1609 and 1614.
To these factors must be added the emigration to America, which although not decisive, significantly impacted Andalusia and Castile.
b) Economic Problems
Agriculture and Livestock
Agricultural production declined, especially in Castile, due to low labor, huge tax burdens on farmers, and reduced demand from the population decline. Property ownership became concentrated, increasing the size of estates. Many farmers had to become laborers for survival, especially in the south (Extremadura, Castilla-La Mancha, and Andalusia). In other areas, the expulsion of the Moors was a significant factor (Valencia and Aragon).
It should be noted as positive the introduction of new crops from America, potatoes and maize, which were critical in some northern areas and in later times. Wool exports remained the most profitable for Spanish trade, even though they suffered because of the ongoing war situation in the area.
Industry and Trade
There was an important market for industrial products and for internal trade. Only the social elites had access to quality craftsmanship provided by guilds or imported from Flanders, Italy, England, France, or the colonies. The profits obtained from the land were not invested in industrial and commercial enterprises, which were considered incompatible with nobility and purity of blood, in addition to having low income and high risk. Property (houses, land), state loans, fees, and titles of nobility were acquired instead, as individuals sought to be independently wealthy without working.
Given these difficulties and the price revolution of the sixteenth century, Spanish craftsmanship went into recession, lacking competitiveness due to high prices. The price increase was bolstered by currency issues and the use of fleece to alleviate the demands of state and finance policy.
Domestic trade was hampered by internal customs among kingdoms (dry ports) and those between the Basque provinces and the rest of the peninsula, in addition to local tolls. Foreign trade exported commodities and imported manufactures, resulting in a deficit of payments that was covered with gold and silver from America, which was more necessary than ever.
American trade declined between 1630 and 1660 due to increasing trade between the colonies, the excessive tax burden, and confiscation of entire shipments of gold and silver for military spending. Since 1660, foreign trade recovered, basically by encouraging foreign merchants to bring goods to the mainland for export to America. At the end of the seventeenth century, only 5% of products shipped to the New World came from the peninsula.
Immobility and Social Polarization
Spanish society remained divided into two privileged classes or estates, the clergy and nobility, and the third estate that produced and worked.
- Nobles: They were 10% of the population, mostly concentrated in the north where half the population was considered noble, albeit modest. The high nobility was no longer rural, living in cities and having ceased to be warlike. Many nobles had this condition by buying the title from the King. The increased number of nobles increased their social and political power. Many rich people paid to have them develop or produce “proofs”, documents that “proved” they were nobles. There were also certificates of purity of blood, essential to get charged.
- Clergy: It was lower, but it did not stop growing in the seventeenth century. The high clergy were usually of noble birth, because for the second children, the church provided a good economic and social position. The monasteries were also one of the few places to live with dignity for single women and widows. The lower clergy was of humble origin, but without economic problems through tax exemptions, collection of tithes, rentals of property, income from services, and private donations.
- The Third Estate: Consisting of those who were neither nobles nor clergy. The predominant group was the farmers, subject to direct taxes (tithes, rentals mansions) that could amount to half the proceeds of their land and livestock. Their position depended on whether they were landowners. In the north, laborers abounded among owners, while in Aragon, Valencia, Extremadura, and the south, the situation was largely the opposite. Most of the artisans and merchants of the cities were organized into guilds. Given the low profile of craft and trade, the role of the bourgeoisie was small business. Lenders and traders were mostly foreigners. The Spanish bourgeoisie rushed to ennoble, leaving businesses to become independently wealthy and avoid paying taxes. In large cities, especially in Madrid, there was a large group of beggars, poor, criminals, and beggars in search of easy money, alms, charity, and the appraised price of cheap bread for the crown.
The Triumph of the Aristocratic and Religious Mentality
Seventeenth-century Spanish society continued to adhere to the same aristocratic and religious values governing the collective mentality of the previous century. The craving for ennoblement made the concepts of dignity and honor, associated with the nobility, claimed by all social groups. The same happened with the rejection of manual labor, considered “vile”, which had a strong negative impact on economic development.
Those who possessed property spent a good part of their income on lavish homes, cars, or fine clothes and horses to show others their “quality.” Those who had no means preferred poverty and begging before getting their hands dirty and damaging their reputation by working.
The result of this mentality was the abandonment of productive investments, so that, except in Barcelona or Cadiz, we cannot speak of a class of merchants and manufacturers with entrepreneurship that could promote economic development similar to that beginning to occur in other European countries.
The social and economic power of the Church, imposed by the Inquisition and enhanced by the growing number of clergy, was also a brake on economic development and ideas, as the church was not a productive group. Moreover, in Spain, there was nothing like the scientific revolution occurring in Europe with the likes of Galileo, Descartes, and Newton.
The Government of the Valid and Internal Conflicts
The time when Philip II directly governed the monarchy was followed by a new stage in which Philip III, Philip IV, and Charles II delegated the exercise of government duties. These duties passed into the hands of omnipotent ministers, the validos or private individuals.
The consideration of government as a tool for personal enrichment and family heritage, and in general, the low political stature of these validos, often led to deepening corruption and inefficiency in the administration of the Crown. Criticism of such a government was abundant:
- The nobles, very influential in the councils (especially in the main one, the state), protested when they were displaced by the validos or could not control them.
- The royal secretaries were suspicious of them and the family members they “placed” in the Administration.
- The popular classes identified the validos with the decline of the kingdom and mismanagement.
a) The Duke of Lerma
The Duke of Lerma was the main political leader in the reign of Philip III, succeeded by his son when he lost the confidence of the king. Both had common features that were then imitated by their successors: they were aristocrats, tried to govern regardless of the boards, and were surrounded by supporters among their relatives and friends. They used the situation to enrich themselves, though their achievements as leaders were scarce.
The Duke of Lerma moved the Court to Valladolid (between 1601-1606), his hometown, to increase his power and influence over the King. He got himself appointed Cardinal, which protected him after his fall. The main measure was the expulsion of the Moors (1609-1614), who were considered false converts. To justify it, it was argued that they constituted a powerful enemy that was becoming more numerous because of its high birth rate. Chances are that the measure was taken to appease an unhappy society. Expulsion seriously affected the agricultural economy of Valencia and Aragon (35% and 20% respectively of their population). The loss of an industrious workforce in a time of demographic crisis significantly hurt the men who owned land. To compensate them, they were allowed to impose harsh conditions on the settlers of their land instead of the Moors.
b) The Count-Duke of Olivares
Don Gaspar de Guzman, Count-Duke of Olivares, favorite of Philip IV (1621-1643), was an exception to the political mediocrity of his predecessors. To rebuild the monarchy and maintain hegemony in Europe, he developed a comprehensive reform program. These began with the cleaning and sanitation of the Administration, which consisted of dismissing dishonest officials and prosecuting their predecessors: the Duke of Lerma and Uceda, while creating many committees to solve the traditional problems of Castile: the ruin of agriculture and industry, excessive luxury of the nobility, reducing the cost of the royal family, etc.
His government was characterized by authoritarianism, by removing power from the councils, which became mere non-binding advisory bodies. This marginalized the nobility that integrated policy decisions. Moreover, Olivares was aware that the structure of the monarchy, in a time of severe economic downturn, was ineffective to maintain the imperialist policy. Therefore, he saw fit to impose a centralized administration to bestow military and tax burdens among all the kingdoms: the Union de Armas, which was to distribute the weight of imperial policy in a manner best suited to the capabilities of each kingdom, which were to participate in the formation of a common army based on population and wealth.