10) Urban Prosperitya) The Netherlands had a higher standard of livingb) Their were more cities in the Netherlands than any other European nation at this timec) Amsterdam was especially prosperous (%60 of its population lived in cities)d) Dutch farmers influenced and revolutionized farming in Europee) Were successful tulip salesmen.11) The Dutch were dominating trade with their merchant fleet.12) Economic Decline- they lose their technological edge on farming and shipbuilding’B. France After Louis XIV1) Even after Louis XIV’s frivolous wars, France still had Europe’s largest population2) France needed a recovery period3) The Duke of Orleans was regent after Louis XIV died, until the 5 year old Louis XV (XIV’s great grandson) was old enough to take the throne. Orleans reign was full of financial scandal, tarnishing the monarchy’s honor.4) John Law and the Mississippi Bubblea) John Law, a gambler, was entrusted with Frances economy by the Duke of Orleansb) Law believed that the production of paper money would boost the economy, so he floodedthe market with more moneyc) He formed the Mississippi Company, a company that exchanged government bonds (whichwere currently low in price and quite abundant) for stock sharesd) This was successful until the stock became successful, and smart investors pulled all theirmoney out in paper money. When these investors tried to cash in their earnings (pretty much all at once) the banks didn’t have enough gold to pay them back, causing an economicfiascoe) In 1720, all gold transactions were stopped, Law fled shortly after. The affair became known as the Mississippi Bubble. The people feared paper money for the next few decades because of it.
5) The Duke of Orleans tried to renew the authority of the nobles, but they lacked talent and
willpower after their domestification at Versailles. Instead, Parlements(councils of nobles which could not legislate law, but had veto rights to laws) were given successful power