1. Though Spain’s colonial empire brought great wealth and prestige, her royal policies created many disadvantages.

2.  Increase in prestige and power so that Spain became competitive with other European powers  Great wealth that fueled its greatest artistic period  Many opportunities for Spaniards of all classes who couldn't find them at home in Spain  Fulfillment of Spain’s Christian mission

3.  Price revolution and inflation, increase in royal expenditures, instability of royal finances, and repudiation of royal debt  Overextension of the monarch’s ability to promote Catholicism conflict with British, Dutch, and Ottomans  Difficulties in fulfilling economic demands because of expulsion of traditional trading populations Jews and Muslims  Discouragement of need to modernize economy or promote manufacturing