Thursday, May 9, 2013

Engulfed in Flames

Beginning with Louis XIV, France is the European superpower. Embarking on a series of wars that overextended their resources, the thousand-year old kingdom of France is in financial trouble. Tax revenues are inadequate to cover the cost. How did they solve the problem?

With the highest national tax rate among the countries of Europe at the time, France still spent half of the budget servicing their debt.

The king's advisers were fired, one after another, for recommending an equitable tax reform. Finally with the king's consent, the controller general of finance, Charles de Calonne, recommended France begin taxing the previously exempt nobility. The nobility refused, even after Calonne pleaded with them during the Assembly of Notables in 1787. None of the wealthy were willing step up and pay their share of the cost to have a governed country.

In desperation, the king called for a meeting of the ancient Estates-General whom he hoped would resolve the national crisis. The 'three estates' were the aristocracy, the clergy, and everybody else, the first two being tax exempt, and each estate having but one vote.

How did they solve the problem?  They didn't, and it didn't work out well for them.  As the wealthy isolated themselves in luxury, they were engulfed in the flames of revolution in 1789.
King Louis XV's comment, après moi le déluge, ("After me, the deluge,") predicting the revolution to come.  It was both visible and avoidable, but without change it was inevitable.

The absolute monarchy that had ruled France for centuries collapsed within three years. French society was shattered; class-based privilege evaporated as persistent masses in the streets and peasants in the countryside fought back.  The death toll: 16,594 were executed by guillotine, and 25,000 more summarily executed across the country.  The monarchy, aristocracy, and religious leaders were summarily cast aside to eventually be replaced by new principles of liberté, égalité, fraternité  (liberty, equality, and brotherhood).  Referred to as, "The Reign of Terror," it was not a peaceful transition.  More than a century would pass with the country in upheaval and war.

So, the lesson of history...

The government favored the wealthy, and working folks carried the burden.

None of the wealthy were willing to pay their share of the cost.  Instead they rode on the back of the working class, and the country went down the drain.  

So the 99% got angry over unequal treatment and they fought for change.  The country fell apart and they spent decades rebuilding it from scratch.  

Is that the lesson?  Nah, couldn't be.  Congress would tell us if it was.  They're smart, and they watch out for us regular folks and for our country.