17th Century Theories and Forms of Government Policy
Item 7: 17th-Century Government Policy
Evolution of Human Thought
The strengthening of royal power and political centralization, which began in the 15th century, culminated two centuries later with the consolidation of a new political form in most European countries: absolutism. France, under Louis XIV, exemplified absolute monarchy.
France in the 17th Century
Throughout the 17th century, France experienced periods of demographic and economic crises, international conflicts, and domestic unrest, including riots and rebellions. Despite these challenges, France asserted its hegemony and became the leading European power. It boasted the largest population in Europe and was considered the best-managed country. Ministers like Richelieu and Colbert implemented administrative changes that allowed full state control, including a new territorial division, legislative reforms, and a new tax system, which generated substantial revenue. Reforms in the army facilitated a policy of expansion and annexation of new territories. While artisans and peasants faced heavy tax burdens, the nobility enjoyed tax exemptions, received payments and honorary awards, held court positions, and controlled church benefices. Their wealth primarily stemmed from land ownership.
Absolutism and Divine Right
Bishop Bossuet championed the political absolutism of Louis XIV. His theories asserted that monarchy was divinely ordained; kings ruled by the grace of God and served as His ministers on Earth. He believed monarchs wielded absolute power and were sacred figures. The principle of divine right freed the king from limitations imposed by traditional state constitutions. Bossuet argued that individual rights were merely usufruct, with the king as the rightful owner of his subjects’ lives and property. This conception led to integral despotism.
Contract Theory
In the early 17th century, natural law writers developed contract theory, opposing the absolutist theory of Jean Bodin. In the 16th century, Bodin believed that absolute monarchy was essential for maintaining order. His thinking blended medieval and modern, peripatetic notions, customary practice, and early absolutism. He defined sovereignty as the supreme order of citizens and subjects, unlimited by law. Consequently, the king was above the law, and no one had the right to rebel against him.
Capitalism
Capitalism is an economic system where private individuals and companies conduct business, producing and exchanging goods and services through transactions involving prices and markets. While its roots trace back to antiquity, capitalism’s development is a European phenomenon. Originating in Europe, particularly Britain, it spread globally, eventually leading to a new socioeconomic system, communism, which became its antithesis. Adam Smith is considered a founder of capitalist theory, having described its basic economic principles. Social interests lie in maximizing the production of desired goods.
Mercantilism
From the 15th to the 18th centuries, as modern nation-states emerged, capitalism’s commercial aspect led to a new trading system called mercantilism. This system flourished in England and France. Mercantilism, like Adam Smith’s capitalism, was based on private ownership and the use of markets to organize economic activity. However, its ultimate goal was to maximize the interests of the sovereign state, not the owners of economic resources, by strengthening the nascent nation-state. Governments controlled production, trade, and consumption. Mercantilism’s main characteristic was the focus on accumulating national wealth, primarily through gold and silver reserves. This involved promoting exports that exceeded imports in volume and value, as international payments were made with precious metals. Mercantilist states aimed to keep wages low to discourage imports, encourage exports, and increase gold inflows.