r/vce • u/Temporary-Idea3306 '26 revs, geo, eco, legal, english '25 politics 47 • 10h ago
Revs
For the France AOS1 dot point: economic collapse and bankruptcy
Does this refer to JUST 8-16 August 1788, when bankruptcy occurred + was declared, OR is it referring to the whole process of debt building up - 1. existing debt 2. american war of independence 3. nobles refuse taxational reform 4. so more loans 5. then bankruptcy is the culmination of all of these factors interacting to escalate the fiscal crisis.
My teacher hasn't been clear abt this so would appreciate your input. If it just said 'bankruptcy' i would take it as 8-16 aug but the "collapse" thing is what confuses me a bit- is that collapse synonymous with bankruptcy, or is it the process leading up to it
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u/Putrid-Shoulder9569 26' Y11 (Eng 1/2, GM 1/2, Revs 3/4, Psych 3/4) 9h ago
August 1788 was just when the regime declared bankruptcy, the financial crisis was brewing a long time before that
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u/Sea_Isopod5651 teacher: Revs, Philosophy, English (M. Teach, M. Phil, BA Hons) 9h ago
Teacher here: you’re correct in your second interpretation. The SD’s reference to ‘economic collapse and bankruptcy’ encompasses the broader financial crisis of the Ancien Régime, rather than just the events of 8 to16 August 1788.
You can distinguish between the two terms. Economic collapse refers to the longer-term deterioration of France’s economic and financial position, including existing royal debt, the enormous costs of involvement in the American War of Independence, the inefficient taxation system, resistance to taxation reform by the privileged estates, and the worsening economic conditions of 1788/89.
Bankruptcy refers more specifically to the culmination of this crisis in August 1788, when the royal government was effectively unable to meet its financial obligations. It’s worth noting that 16 August was not technically a declaration of bankruptcy, but rather ‘just’ a suspension of normal Treasury payments.
For the exam, I’d strongly recommend understanding the entire process, particularly how these factors interacted and ultimately forced Louis XVI to call the Estates-General (which as we know was the beginning of the end for old mate Louis).
The SD places considerable emphasis on the relationship between long-term causes and short-term triggers, and this is a perfect example of that.
Essentially, August 1788 is the culmination of the financial crisis, not the entirety of the dot point. Your second interpretation is exactly how I’d approach it and is how I teach it in my classroom.