Spain’s Economy and Society in the 16th Century

Economy and Society in 16th Century Spain

In economics, agriculture was very outdated, and poor land distribution hindered modernization. Important rainfed crops included grapes and cereals, while irrigation was prevalent in Andalusia, Aragon, Catalonia, and Valencia.

In livestock, transhumant sheep farming in Castile was favored by the Catholic Monarchs and Charles I but later declined due to opposition from farmers.

Industry saw remarkable progress in the early 16th century due to a rising population, increased prices, the American market, and the relative abundance of raw materials.

Services: The domestic transportation network was poor, making trade difficult. Seaborne trade occurred with Italy, Flanders, England, and America. The monarchy’s efforts to maintain hegemony in Europe squandered money, necessitating a collection policy:

  • Taxes, set by the Catholic Monarchs, were expanded as needed.
  • American silver became the main source of funding.
  • German bankers were lenders to Charles I.
  • Despite being considered income, the system was untenable, especially when American metal became scarce, leading to bankruptcies.

16th-century society was class-based, with privileges based on a pyramidal structure articulated on estates.

  • The Third Estate comprised the bulk of the population and paid taxes.

Economic and Social Developments

There were three main sectors:

  • Primary: Agricultural production fell due to a shortage of manpower and poor land use, provoking rising commodity prices and the impoverishment of the peasantry.
  • Secondary: Customs and a lack of investment led to the retardation of crafts and the decline of textiles and metallurgy.
  • Tertiary: Services were scarce, and protectionism favored smuggling. The trade balance had a chronic deficit due to tax advantages granted to other countries.

Socially, the population declined due to plague, the expulsion of Moors, wars, and emigration to America, coinciding with the economic crisis. The high nobility increased in number but had low power and were ruined. The clergy grew in numbers and continued to exert great influence. The bourgeoisie was related to the lower nobility, and the peasants were burdened by taxes.

The Golden Century

Religion was all-encompassing after the Counter-Reformation. Internal matters were more important than external ones, and the collective was more important than the individual. Purity of blood was important, and honor was highly valued. Handicrafts were considered lower class. While Spain was concerned with the economy, politics, and military matters, culture flourished during the Golden Age.

Leading figures included Cervantes, Lope de Vega, Tirso de Molina, Quevedo, Góngora, and Calderón de la Barca.

Architecture became almost theatrical, using poor materials. Gómez de la Mora, creator of the Plaza Mayor and the city of Madrid, was prominent. As the century progressed, the Churrigueresque style became appreciated in Salamanca, represented by Pedro de Ribera in Madrid.

Sculpture predominantly used religious images in painted wood. There were two schools: one in Valladolid in Castile and another in Andalusia in Granada. In painting, the subject was religious, and notable artists included Zurbarán, Ribera, Velázquez, and Murillo.