How Did The Thirty Years War Affect The Economy

The Thirty Years’ War was a battle between the Protestant and Catholic forces within the major powers of Europe from 1618 to 1648. This long-lasting war resulted in government instability throughout Europe and it redirected the future of their political system. The Thirty Years’ war resulted in the collapse of the Holy Roman Empire and led to the fall of the Hapsburg powers. The war resulted in high taxes, the drainage of state resources, and the destruction of the German economy. To begin, the main powers involved in the Thirty Years’ War, including Sweden, Spain, and France. Each of these countries took different directions when paying for the war. Firstly, Sweden had previously been at war since 1600, causing the country to focus on their

After the cost of the military was taken from the budget, it left only 3 million ducats to pay for the government of Spain, forcing them to borrow money. The country of Spain increased its spending by 150% although its national income only increased by 25% and this resulted in national bankruptcy. To help fight their falling economy, Spain began to mint copper coins, which had much less value than silver ones. Spain then began to introduce a sales tax under the rule of Philip II, and it proved inefficient, forcing Philip IV to sell more of the Spanish royal estates. Much like Sweden, this provided a short-term income, but resulted in a weaker long-term income plan. Spain called out to its satellite states for help and they all introduced war taxes as well. While the war continued, Spain continued to receive loans based on the chance that a large bullion load would arrive, and this caused the loaners to want the potential abundance of currency. After Spain became bankrupt, they were given permission from the Pope to introduce essentially Christian church taxes. At this time, Spain had been defeated several times and was considering terms of peace with the Dutch. In 1647, Spain became