Economic and Social Crisis in 17th-Century Spain
The seventeenth-century crisis affected all of Europe, although in Spain, the impact was enhanced by a political meltdown. The population stagnated during this century in the peninsula, although the incidence varied; the center of Castile suffered a major depopulation and de-urbanization process (except for Madrid), while the periphery was less affected.
Demographic Stagnation and Its Causes
The causes of this stagnation were due to:
- Subsistence crises and epidemics
- The drain of wars in Europe
- Emigration to America
- The expulsion of the Moriscos (Moors)
Agricultural Crisis and Regional Exceptions
In Castile, where the population declined and tax burdens increased over the century, agriculture suffered from a major crisis that led to shifting cultivation patterns. Farmers went into debt, abandoned their property for the cities, and ownership became concentrated in a few hands. An exception was the Cantabrian mountain range, which experienced a so-called revolution of maize, with the introduction of new products like corn and potatoes and their integration with livestock stables.
Economic Decline and Trade Challenges
The arrival of precious metals from America, the continued devaluation of the currency, and the huge costs of the monarchy during the seventeenth century led to a notable increase in prices. This primarily affected handicrafts, especially textiles, because the price increase made them uncompetitive and favored imports of manufactures from the rest of Europe. Trade had a period of boom, aided by American commerce, but was largely held by foreigners (Genoese, Dutch, and German), which broke the American monopoly in favor of competitors such as the English or Dutch.
Social Structure and the Estate System
Society continued with the structure of estates. The nobles, who represented 10% of the population, remained the wealthiest social group, maintaining their privileges. They sought to live at Court to obtain prebends from monarchs and developed systems to protect against the rise of other groups (mainly the bourgeoisie), emphasizing the purity of blood (a prerequisite for office) and the prohibition of manual labor.
The Clergy and the Peasantry
The clergy saw a significant increase in this century because many people sought protection within its fold. The privilege of not paying taxes, combined with the collection of tithes and rents, led many people—especially farmers—to look to the ecclesiastical state as a solution to their economic problems. Conversely, the peasants were impoverished by rising prices, poor harvests, and higher taxes, which caused many to leave their fields for the city, America, or the army.
The Bourgeoisie and Marginalized Groups
The bourgeoisie, organized in unions, sought fixed income through the purchase of property and access to the nobility through the occupation or purchase of positions. Investment in productive jobs fell as foreign imports were encouraged. This lack of growth led to the impoverishment of marginalized groups in cities (beggars and the poor) and banditry in the countryside.