KEY POINTS LEADING TO THE SPANISH EMPIRE’S DECLINE AND FALL IN THE SEVENTEETH CENTURY

CHRISTINE NILSON

24 December 2011

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KEY POINTS LEADING TO THE SPANISH EMPIRE’S DECLINE AND FALL IN THE SEVENTEETH CENTURY

The Spanish Empire of the sixteenth and seventeenth centuries has a story of irresponsible, selfish and foolish policies. The major problems revolved around their failure to build their internal economy, the ever increasing unsolved debts, and dependence on colonial silver. These problems were aggravated by other world events that they could not control. The empire best period was called Spain’s Golden Age. This occurred approximately between 1516 and 16591, although historians frequently list various time spans. Spain’s monarchs in this period claimed God had chosen them to rule over all decisions. Generally they ignored the country’s constitution that could limit their power. Other governing bodies existed, but the king had the final say.2 The empire controlled lands in areas of north and south central Europe from the Netherlands to the islands at the tip of Italy. They controlled colonies in many parts of America including Peru, Central America, various islands and Mexico.3 Eventually, they took over Portugal and its African and Asian colonies along with their trade routes.2 One kings just before the decline, Charles V, had the title of Holy Roman Emperor.4 Spain had little internal means to produce income. The general population took a light view of seeking to build wealth, but joining a monastery was very popular.5 In1609, Philip III expelled most of their productive workers because they followed the wrong religion. The textile industry failed because of outside competition. The self-indulgent habits of the aristocracy took so much income from peasants that many peasants could not continue to operate.5 Spain was also hurt by frequent bad harvests and plagues. These factors led to heavy losses in population

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from disease and migration to the New World colonies. Less population gave the monarchy fewer people to tax.6 The Spanish empire survived in deep debt and thrived on credit. Wars started the problem. The monarchy militantly promoted Catholicism under Philip II.7 Philip II left the empire in debt because of the long war to keep Dutch territories, and then he repeatedly attempted to attack England. At every attempt, he built and lost many expensive warships .8 Instead of seeking to resolve the debt, he spent money on enormous architectural projects.9 Philip III, who started his reign in 1598, led Spain to continue the Dutch Wars and lavish spending.10 Phillip IV built more royal apartments in 1630. He paid to have twelve expensive paintings created to illustrate war victories.11 Multiple wars were almost constant.12 Because of Spain’s large debts, the soldiers began to earn much less than the peasant farmers.13 In 1641, the military was poorly equipped with slings for rocks or muskets with no more than six bullets. Soldiers started rebelling and leaving. Subjects began to view the government as incompetent and untrustworthy. Many citizens would not agree to serve.11 the unanswered question is why the subjects did not revolt against the government. Spain financed the wars with credit and did not implement any practical way to pay for them. They obtained credit only because the silver trade from its colonies gave the impression that they could pay back debt.14 When the silver trade was not enough to impress creditors, Spain suffered several bankruptcies.15 The monarchy chose quick means to regain credit. They sold offices and titles, and pawned royal rights to towns and villages. This created an elite group of creditors that Spain feared to upset.16 “The crown had created a monster that consumed thousands of Indian and African lives, bore heavily on the backs of its European subjects, and from which it could not escape.”16 Despite this, Spain’s tactics appeared to work for them.
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“…Spain had built up sufficient political and military momentum by 1621 that its imperial juggernaut carried on for two decades after it had run out of fuel”.17 Philip III increased inflation by issuing debased copper coins instead of full silver ones.18 Then the silver trade failed for many reasons. The monarchy began to steal privately owned silver as it came into port. The private owners found ways to deceive the monarchy so they could get silver past the government. The colonies found ways to trade apart from the Spanish. During 1638-41, the trade virtually ended.19 The monarchy chose to make ends meet by charging taxes so high that the subjects could not pay.13 This led to more decentralize of government in an attempt to raise funds quickly. Assets of any significance to sell were gone by 1644.13 Spain gradually had to give up chunks of the empire.12 Spain could not support their military to win wars. The French Bourbon dynasty took power in 1701.20 Spain’s tragic handling of their empire provides a lesson on what not to do. The monarchy should have thought about long-term consequences. Their choices showed little caring for the people they ruled. The goals were to maintain personal power and wealth. Historians believe Spain would have done better had they been “concerned with the underlying problems of depopulation, de-industrialization, agrarian depression and stagnant trade”.17

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Endnotes 1. Peter H. Wilson, The Thirty Years War: Europe’s Tragedy (London: Penguin Group), 116. 2. Wilson, Thirty Years War, 124. 3. David Hilliam, Phillip II: King of Spain and Leader of the Counter-Reformation (New York: The Rosen Publishing Group, Inc.), 25. 4. Hilliam, Phillip II, 12. th 5. John P. McKay et al, A History of World Societies, 8 ed., Vol. II: Since 1500 (New York: Bedford/St. Martin’s), 471. 6. Wilson, Thirty Years War, 117. 7. Hilliam, Phillip II, 25, 95. 8. Hilliam, Phillip II, 85, 96. 9. Hilliam, Phillip II, 91. 10. Wilson, Thirty Years War, 128. 11. Wilson, Thirty Years War, 657. 12. Peter Pierson, the History of Spain. (Westport: Greenwood Press), 67-69 13. Wilson, Thirty Years War, 656. 14. Wilson, Thirty Years War, 120. 15. Wilson, Thirty Years War, 121, 123, 130, 731. 16. Wilson, Thirty Years War, 121. 17. Wilson, Thirty Years War, 123. 18. Wilson, Thirty Years War, 122-123. 19. Wilson, Thirty Years War, 435-436, 659. 20. Pierson, History of Spain, 71.

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Bibliography Hilliam, David, Phillip II: King of Spain and Leader of the Counter-Reformation. New York: The Rosen Publishing Group, Inc., 2005. McKay, John P. et al., A History of World Societies, 8th ed., Vol. II: Since 1500. New York: Bedford/St. Martin’s, 2009. Pierson, Peter, The History of Spain. Westport: Greenwood Press, 1999. Wilson, Peter H., The Thirty Years War: Europe’s Tragedy. London: Penguin Group, 2009.

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