Spanish Empire Under the Habsburgs: 16th-17th Centuries
The Revolt of the Communities
The Revolt of the Communities arose as a protest against the economic policies of the nobles, artisans, and merchants, and their breach of the laws of the kingdom. It spread, and peasant revolts became anti-aristocratic.
The Germanias
The Germanias was a revolt of peasants and traders who demanded access to municipal offices and the improvement of farmers’ arriendo (lease agreements). They appealed to the king, but Charles I allied with the nobility.
The Government of Philip II
Real power continued with the powers and institutions of the authoritarian monarchy created by the Catholic Monarchs, but the power increased and deepened monarchical centralization. The courts were rarely convened, and all decisions were made by the king, who was assisted by a legion of staff (bureaucracy). Philip II increased the system of councils with advisory functions. He introduced the figure of a mayor, a representative who controlled all the municipalities.
The Arrival of Gold and Silver
Gold came from the American mines. The enormous amount of precious metal that entered caused an enormous rise in prices (price revolution) that diminished the purchasing power of the masses and their quality of life.
Society
Social dominance lay with the nobility and the clergy. The nobility accumulated the highest percentage of income and wealth of the kingdom and were exempt from taxes. The underprivileged, 80% of the population, were peasants (commoners) subject to the payment of taxes and all types of obligations. The Moors and Jews were converts.
Economy
There was a great demand for agricultural products, which could not be covered by the production of the Hispanic kingdoms. The handicraft industry also saw an increased demand for products, but the politics of the monarchy favored exporters of wool. Local industry was weakened due to strong foreign competition, which offered better quality products at a lower price. Trade experienced a large development; Spanish and foreign merchants were responsible for bringing products from all over Europe.
Philip III
Philip III inaugurated a new political era for the Austrians. Both he and his successors personally waived the tasks of government, which passed into the hands of omnipotent ministers (validos or favorites). Philip III had a brief and peaceful reign. He gave the government to the Duke of Lerma, who was able to maintain peace abroad. The most relevant event was the expulsion of the Moors, which further aggravated agricultural problems.
Philip IV
Spain became involved in European conflicts again. The main cause was the outbreak of the Thirty Years’ War. The Count-Duke of Olivares, the king’s favorite, was a strong supporter of the war. Despite some initial victories, defeats soon followed. The Peace of Westphalia ended the war and made clear the decline of the Hispanic monarchy.
Charles II
The reign of Charles II constituted a critical moment for the empire. It was marked by the king’s inability, a severe economic crisis, and the loss of Spain’s political weight. Charles II had no children, and there was a conflict of succession.
The Economic Crisis
Agriculture worsened its already bad situation. Hunger, war, and epidemics led to depopulation and an increase in taxes, both stately and royal. Many farmers abandoned their lands to live in the cities, often as knaves or beggars. Livestock also saw a reduction in the number of cattle due to dry pastures and the destruction caused by wars. Industry and commerce experienced a very large drop due to competition from foreign products and also due to the low purchasing power of an increasingly impoverished population.