17th Century Spain: Demographic and Economic Crisis
Demographic Crisis: Over the seventeenth century, the Spanish population stagnated. This zero growth was due to several factors:
- Successive subsistence crises, mainly caused by poor crops.
- Epidemics, exacerbated by malnutrition.
- Wars and forced recruitment due to a lack of mercenaries.
- The expulsion of the Moors, which impoverished the peasantry.
- Emigration to America.
Economic Problems
Reduced Agricultural Production
Agricultural production decreased, primarily in Castile, due to low labor, a heavy tax burden, and reduced demand. Valencia and the Crown of Aragon suffered from the loss of the Moors.
Imbalance of Foreign Trade
Raw materials were imported, and manufactured goods were also imported. This led to a shortfall in payments, which were made in gold and silver. The need for gold and silver made trade with the Indies essential. Consequently, Seville was the most important port, later replaced by Cadiz.
Decline of Trade with America
Trade with America declined between 1630 and 1660 due to increased trade between the colonies themselves, excessive taxes, and the Crown’s confiscation of silver remittances. Trade recovered from 1660, mostly benefiting foreign traders.
Recession of Spanish Crafts
Spanish crafts, especially textiles, suffered a recession due to a lack of competitiveness caused by high prices.
Lack of Investment
There was a lack of investment in industrial and trade activities, as these were considered inadequate for nobles and gentlemen due to low profits and high risks. Instead, the elites invested in property acquisition, seeking income without working.
A Static Society
Nobility
The aristocracy was concentrated in the north of the peninsula. The high nobility was urban, living in cities like Madrid, Seville, and Barcelona. The court nobility lived off income from land they never visited and bought positions and privileges. They were exempt from many taxes and led a life of leisure.
Clergy
The clergy, though reduced, continued to grow during the seventeenth century. The higher clergy, mostly of noble origin, enjoyed a stable and comfortable financial situation. The church offered an attractive economic and social position for second sons. The lower clergy was of humble origin. The church was concentrated in the largest and wealthiest cities and rural areas with more resources. The clergy did not suffer financial burdens due to tax breaks, the collection of tithes, and income from urban and rural properties, as well as income from church services and private donations.
Third Estate
The third estate comprised those who did not belong to the other two estates, resulting in remarkable diversity. The predominant group was the peasants, who were subject to direct taxes, often amounting to half of their crop and livestock proceeds. Most were laborers, a group that increased during the seventeenth century. Artisans and merchants in the cities were organized into guilds, strictly closed and hierarchical institutions. Most entrepreneurs were foreign. The Spanish bourgeoisie abandoned industrial and commercial businesses to invest in property rentals and land titles, seeking to ennoble themselves.