Colonial Spanish America: Society, Economy, and Decline
The Commercial Society
The political and economic power was in Spanish hands, but most of the population were Amerindians. Los Creoles, descendants of the colonists, numbered almost half a million by the end of the sixteenth century. There were also many mestizos, sons of Indian and Spanish parents. In areas where labor was scarce, the native black population was transported from Africa. Colonization had serious consequences for the indigenous population, and in areas such as the Caribbean, the indigenous population disappeared.
The Exploitation of Resources
The new American territories were an important source of income for Castile. The settlers sought stable sources of funds and demanded that the Crown grant them land and mines. These were divided among the settlers, and to work them, the encomienda system was established. This system allowed the delivery of new settlers from indigenous groups who, in exchange for protection, livelihood, and religious education, would work for them. The rapid discovery of gold and silver led to the dictation of rules for the operation and marketing of these metals. The mines were royal property, and the Crown granted their exploitation in return for a fifth of the mineral extracted. The mita system forced Indians, chosen by lot from among the people, to work in the mines for wages imposed by the colonizers. Work in fields and mines was based on the exploitation of indigenous labor. The Crown attempted to prevent abuse by the colonists, and Indian laws prohibited the enslavement of indigenous people.
The Defense of Catholic Orthodoxy
Philip II championed the spirit of the Counter-Reformation and the struggle against Protestantism. To prevent its spread in Spain, laws were passed prohibiting the importation of books or travel abroad for study.
The existence of many more conducive converts persecution, the Inquisition was imposed.
The most serious problems were caused by the persecution of the Moors, who were banned from using their language, dress, and customs.
Philip IV: The End of Hegemony in Europe
Under Philip IV, Spain became involved in European conflicts, primarily the Thirty Years’ War.
The Count-Duke Olivares, the King’s favorite, was a supporter of the war. Despite some victories, defeats soon followed. The Peace of Westphalia ended the war.
The war consumed enormous resources and impoverished Castile. Olivares attempted to recruit men and raise taxes, but this provoked the uprising of 1640 in Catalonia, Andalusia, and Portugal. In Andalusia, the revolt was quickly suppressed, but Portugal eventually separated from Spain.
In Catalonia, authorities sought help from France.
The Economic Crisis
Agriculture worsened. Famine, war, and epidemics caused depopulation, along with an increase in taxes. Many farmers left the land to go to the cities.
Livestock numbers also declined due to drier grasses and the destruction of war.
Trade and industry suffered a sharp decline due to competition from foreign products and the low purchasing power of the population.
The worsening situation of political finance was also the result of an increase in court costs.
Neither increased taxes nor constant devaluations could save the Royal Treasury.
Social Problems
The huge influx of wealth, instead of stimulating productive activities, was used to pay companies to consolidate imperial power and a social model of nobility.
Faced with a privileged few, there was a huge mass of impoverished people: peasants who had lost their land, impoverished artisans, and nobles who could barely survive.
All aspired to go to America and get rich.
Only the surrounding areas of the Crown of Aragon suffered less from the crisis, with a more stable currency.