Sixteenth and Seventeenth Century Spain: Economy, Society, and Culture

Economy and Society in 16th Century Spain

During the 16th century, there were two significant economic phenomena:

  • Price Revolution (Inflation): A continuous rise in prices caused by increased money supply (arrival of American precious metals), the opening of a new market (America), and population growth. Demand surpassed supply, leading to rising prices.
  • Crown Debt: Funding was required for the Hapsburgs’ foreign policy (involvement in numerous wars). Funding was obtained from private bankers and the sale of juros (public debt). These resources were insufficient, and Philip II declared bankruptcies in 1557, 1575, and 1596.

Key social characteristics included a population increase (eight million by the end of the 16th century), population concentration in Castile (80%), significant urban population growth (Seville: 120,000 inhabitants; Toledo and Valencia: 60,000 inhabitants), an increase in clergy, and the aspirations of the ennobled bourgeoisie.

Culture and Mentalities: The Inquisition

During the reign of Charles I, modern intellectual currents, especially the humanism of Erasmus, entered Spain. Notable humanists included Juan Luis Vives and the Valdés brothers. Legal theories were developed by Francisco de Vitoria and Francisco Suárez, creators of international law. In the scientific field, the founding of the Academy of Mathematics (1582) and the work of Dr. Miguel Servet (discoverer of pulmonary circulation) are noteworthy. Literature flourished with lyric poetry influenced by Italian styles (Garcilaso de la Vega, Juan Boscán), mystic poetry (Teresa of Avila and John of the Cross), and ascetic poetry (Fray Luis de León). The stage saw a transition between medieval and modern theater (Juan del Encina, Lope de Rueda). The novel produced a masterpiece: Lazarillo de Tormes.

The Tribunal of the Inquisition in Castile was authorized by Pope Sixtus IV in 1478 during the reign of Ferdinand and Isabella. Its creation was linked to growing popular hostility towards conversos (baptized individuals accused of maintaining their old religious practices). The Crown headed the Tribunal through the Council of the Inquisition and the appointment of the Inquisitor General. The Tribunal used torture and anonymous denunciations. Philip II utilized the Inquisition for internal repression (persecution of Protestant communities in Valladolid and Seville, etc.). Supported by the Inquisition, Philip II reinforced the religious intolerance initiated by the Catholic Monarchs.

17th Century Spain: Habsburg Dynasty, Validos, and Internal Conflicts

The 17th-century kings did not exercise power directly, choosing to delegate it to trusted individuals (validos), usually members of the nobility. Key validos included the Duke of Lerma (favorite of Philip III), the Count-Duke of Olivares (Philip IV), Valenzuela, Father Nithard, and John Joseph of Austria (Charles II). The emergence of the valido was due to factors such as the monarch’s inability to exercise power directly and the increasing complexity of government. Validos were held responsible for the successes and failures of each reign.

The most significant internal conflicts stemmed from the centralizing attempts of the Count-Duke of Olivares. Olivares designed the Unión de Armas (1625) project, aiming to distribute military responsibility among all states to create a common army funded proportionally to population and wealth. Valencia and Aragon agreed to maintain an army for fifteen years, but Catalonia refused. Olivares’ centralizing efforts provoked revolts in Vizcaya, Naples, Andalusia, Aragon, and elsewhere. The revolts of Catalonia and Portugal were the most important, leading to the crisis of 1640. The crisis was triggered by the Count-Duke of Olivares’ centralizing efforts. The rebellions of Catalonia and Portugal were the most significant:

  • The Catalan rebellion began in 1640, led by the peasantry and urban population, and directed by the Catalan bourgeoisie. The aim was to establish a republic under the protection of King Louis XIII of France. The rebellion ended in 1652 after the royal army occupied Barcelona.
  • The Portuguese rebellion began, taking advantage of the Catalan revolt. The Portuguese, backed by France and England, named John IV as king. The conflict ended with the Treaty of Lisbon (1668), in which the Spanish Crown recognized Portugal’s independence.