The Habsburg Monarchy: Politics, Economy, and Society in 16th-Century Spain

The Habsburg Political Model and Union of Kingdoms

The Habsburg monarchy was a multinational monarchy that developed the model established by the Catholic Monarchs (RRCC): an authoritarian monarchy with a growing concentration of power.

Organs of Government: The Polysynodial System

The Habsburgs ruled directly but delegated authority of major or minor validity, leading to growing centralization and bureaucracy. This system of government is known as Polysynodial.

Key Institutions and Roles

• The Monarch: The center of all power, supported by the Court.
• The Councils (Consejos): Central to the Polysynodial system.
• The Secretaries: Links between the King and the Councils, holding significant power.
• The Viceroys: The King's personal representatives in non-Castilian territories.
• The Courts (Cortes): Gradually losing power.
• Audiencias (High Courts): The number of these judicial bodies increased.
• The Army: Development of a standing army.

Funding the Administration

Resources to fund the administration came from:

• Royal estates, metals, and American taxes.
• Genoese and German bankers who lent money to the Crown.

The Union of Kingdoms

The union was based on maintaining the existing laws and institutions of the constituent kingdoms (a union above). This sometimes involved the creation of specific Councils, such as the Council of Portugal.

Economy and Society in 16th-Century Spain

Economic Upswing and the Price Revolution

The sixteenth century represents a significant upswing in the economy, favored by two main factors:

1. Population growth, resulting in increased demand.
2. Increasing the money supply (due to American silver).

The combination of these two events triggered the Price Revolution. Despite this expansive period, Spain lost the opportunity offered by the monopoly of trade with America.

Causes of Economic Failure

The causes of this economic failure were varied:

• The costs of continued warfare.
• An anti-bourgeois conservative mentality.
• The industrial superiority of the Netherlands, England, and France.

Social Structure: The Estate Society

In the social field, the typical medieval estate society continued, characterized by strict legal differences. These groups were not homogeneous:

The Nobility

The nobility ranged from those holding the Title of Castile (Grandees) down to simple knights or nobles (hidalgos). A new feature was the formal appearance of The Grandees of Spain among the high nobility.

The Clergy

Within the Clergy, the high clergy enjoyed wealth, contrasting sharply with the lower clergy.

The Commoners (Third Estate)

Among the commoners (the underprivileged), there were vast differences. Wealthy landowners, big merchants, or guild masters had nothing in common with laborers or the urban proletariat.

New Social Features

The period saw the consolidation and extension of guilds in cities and the widespread adoption of purity of blood statutes, promoting the prototype of the Old Christian.