Section 5: Economic Policy and Military/Foreign Policy
Louis XIV’s successes would have been impossible without the brilliant workaholic he appointed to oversee the economy– Jean Baptiste Colbert . Exposing massive corruption under his predecessor, Colbert clawed back millions from bankers and arms manufacturers who had stolen from the government with complete impunity. The government was still too weak to collect taxes directly, however. Instead, “tax farmers”--private corporations that used violence to squeeze revenue from the common people–gave the government a fixed portion of what they could collect and kept the rest for themselves. Colbert made sure that tax farmers had to bid competitively to win the right to collect from a particular province, thus greatly increasing the government’s percentage of total revenue collected. In addition, the palace of Versailles (see Section 3) played a major role in the French economy. First of all, it consumed an average of 10% of the state budget during its construction (1661-1715), money that co