The French Revolution: Causes, Phases, and Liberal Economic Foundations

The French Revolution: Causes and Impact

I. Roots of the Revolution

The causes of the revolution are rooted in a deep economic and social crisis. Poor harvests caused the rising price of food and widespread popular discontent.

Socio-Political Tensions

• Bourgeoisie Dissatisfaction: The bourgeoisie were dissatisfied with their political marginalization, as only the privileged classes could hold public office.
• Enlightenment Ideas: Influenced by Enlightenment ideas, the bourgeoisie sought to put an end to absolutism and the whole system of the Old Regime.

The Financial Crisis and the Estates-General

The solution to the financial crisis required a tax reform that would compel the aristocracy to pay taxes. However, the absolute monarch, Louis XVI, feared displeasing the privileged.

In the beginning of the French Revolution, the privileged refused to pay taxes and demanded that Louis XVI convene the Estates-General, the only body that could pass a tax reform.

The Events of 1789

1. Convening the Estates-General: The Estates-General opened in Versailles in May 1789, chaired by the King and consisting of representatives of the nobility, clergy, and the Third Estate.
2. Demand for National Sovereignty: The representatives of the Third Estate demanded double representation, joint deliberation, and a vote per person, asserting the idea of national sovereignty.
3. Formation of the National Assembly: Since the monarch and part of the nobility only accepted dual representation, the deputies of the Third Estate met on June 20 in the hall of Paris (Jeu de Paume) and declared themselves the National Assembly.
4. Storming the Bastille: On July 14, the representatives of the Third Estate stormed the Bastille fortress, took up arms, and prepared to defend the revolutionary process by force.

The revolution also spread to the countryside, in the form of a seignorial revolt which involved the burning of many homes.

Constitutional Achievements

On August 4, the National Constituent Assembly decreed:

• The abolition of feudal privileges.
• The proclamation of the Declaration of the Rights of Man and of the Citizen.

II. Phases of the Revolution

The French Revolution unfolded in three main phases:

1. Constitutional Monarchy (1789–1792)

   This phase was supported by the conservative bourgeoisie, who aspired to reach an agreement with the King and the privileged to abolish the Old Regime and impose liberalism.

2. The Democratic Republic (1792–1794)

   This phase was driven by the radical bourgeoisie and the popular sectors, who sought a more profound transformation of society toward a democratic and egalitarian system.

3. The Bourgeois Republic (1794–1799)

   This phase marked a return to power of the conservative bourgeoisie, which established the predominance of property owners.

III. Capitalism and Liberal Economic Principles

The principles of economic liberalism, established by Adam Smith, formed the foundation of modern capitalism:

• Self-Interest as Engine: Personal interest and the pursuit of maximum profit are the engine of the economy.
• Market Equilibrium: Various interests are balanced in the market, where prices adjust supply to demand.
• Non-Intervention: The state should not intervene in the functioning of the economy and must allow free development (laissez-faire).

Under this system, the means of production are privately owned by a small group, primarily the bourgeoisie.