Economic Liberalism and the French Revolution
Item 2: Economic Liberalism
The Rise of New Economic Thinking
With the Industrial Revolution came the development of a new economic theory: liberalism. This theory was developed by a group of English thinkers, including Adam Smith, Robert Malthus, and David Ricardo.
Adam Smith
In 1776, Adam Smith wrote “The Wealth of Nations,” which developed the concept of free economic thinking. He argued that society is a group of individuals, and the wealth of a nation depends on the work of those individuals. Self-interest drives individuals, which in turn benefits the collective interest. Smith believed that the market regulates itself through supply and demand, and that government intervention in the economy, such as protectionism, monopolies, and guild rules, should be avoided.
David Ricardo
David Ricardo believed that labor is a commodity, and the wages workers receive ensure their survival.
Robert Malthus
Robert Malthus theorized an imbalance between population growth and resources, arguing that population grows faster than resources.
Private Property and Capitalism
Private property is the basis of the capitalist system. The means of production—factories, raw materials, machines—are privately owned. This ownership creates two groups: the bourgeoisie (capitalists) who own the means of production, and the proletariat (workers) who do not. The proletariat sell their labor to the bourgeoisie in exchange for wages.
Unplanned System and Crises
Capitalism is an unplanned system driven by free initiative and the pursuit of maximum individual profit. This competition between capitalist enterprises leads to a constant need for technological innovation. This innovation increases production and lowers prices, but can also result in overproduction crises. These crises affect many companies, and only the strongest survive. Surviving companies adapt by finding new products and markets.
New Social System: A Class Society
The Bourgeoisie
With the rise of capitalism during the Industrial Revolution, the bourgeoisie became the dominant class, displacing the nobility. They controlled economic and political power, often through census suffrage (voting rights limited to the wealthy). The bourgeoisie also controlled the press and universities. Middle classes emerged, consisting of clerks, technicians, and those practicing liberal professions. These middle classes often imitated the lifestyle of the bourgeoisie.
The Workers
The workers constituted the majority of the population and were the most exploited group in society. Many were former peasants who became industrial workers. They were hired and fired according to business needs, earned low wages that barely covered basic needs, worked long hours (14-16 hours a day) in harsh conditions, and lacked insurance or protection in case of illness or unemployment. Their housing was often unsafe. Women and children also worked, often for even lower wages. During the first phase of industrialization, there were no laws protecting workers. The first such laws, known as the “Factory Acts,” were enacted in England in 1833.
Item 3: Causes of the French Revolution
The causes of the French Revolution can be categorized into two types:
Structural Causes
These relate to the organization of the Ancien Régime, including the estate system and absolute monarchy. The Third Estate, comprising the majority of the population, was marginalized. They paid the majority of taxes but had limited access to political power, military positions, and privileges.
Conjunctural Causes
Three main factors contributed to the revolution:
- Crisis in the Countryside and the City: Years of bad harvests prior to the revolution led to a fall in wine prices, ruining many peasant families. This fueled anti-feudal sentiment and a desire for land ownership. The crisis also affected cities.
- Bankruptcy of the French State: The French state was spending more than its income. Ministers of Louis XVI attempted to tax the nobility, leading to the convocation of the Estates-General and the creation of cahiers de doléances (lists of grievances).
- The Ideas of the Enlightenment: Ideas such as equality and national sovereignty promoted a society in opposition to the estate system. The meeting of the Estates-General led to the creation of the cahiers de doléances.