1. SPANISH GOVERNMENT, ECONOMY AND POPULATION IN THE 16TH CENTURY

2. GOVERNMENT: MONARCHY
Charles I and Philip II both had authoritarian monarchies:
directly exercised power.
assisted by secretaries, council and administration.
federal monarchy: territories were governed through an association of states with the same monarch but with independent laws and customs.
Monarch was represented in each territory by a viceroy.

5. PHILIP II WIVES. María Manuela of Portugal. Mary Tudor,
Queen of England,
his aunt.
Anne of Austria,
his niece.
Elizabeth of
Valois, France

6. GOVERNMENT. He established Madrid as capital city.
Philip's empire was huge and ungovernable as a unitary State.
Each territory had its privileges and representative assemblies.
The size of the Empire and the distances made direct governance impossible and communication between the territories was extremely slow.

7. THE ARMY: LOS TERCIOS
Important due to the many wars started by the monarchy.
Organized into tercios: infantry, artillery and cavalry.

8. POPULATION
Population increased in the 16th century reaching 8 million inhabitants.
Population distribution was uneven:
Castile had 6.1 million inhabitants
Aragón had 1.34 million.
Inmigration to America was a way to escape to poverty.

10. After the defeat, more than 70,000 Moriscos were dispersed around the lands of Castile. This had a negative effect on the economy because Moriscos were good farmers (especially in irrigated lands and artisans (silk). The Moriscos were finally expelled from Spain in 1609.

11. SOCIAL GROUPS The nobility and clergy continued as a privileged group:
they were subject to royal authority.
they maintained social prestige and economic power.
nobility occupied posts in the war and diplomacy.
the king selected the candidates for ecclesiastical positions.

12. SOCIAL GROUPS
The middle class or bourgueoisie was not very representative:
They wanted to become nobles and had a noble lifestyle so they wanted to arrange marriages with the nobility or buy noble titles to the king.
The middle class disliked trade and craftmenship. Only wanted to trade with textile products and wool. This idea had a negative impact in Spanish economy evolution

14. SOCIAL GROUPS
The third estate was composed mainly by peasants and craftsmen
The social minority was formed by Jews and Muslims. They had to prove they had pure blood to hold positions. Both of them were forced to leave Spain.

16. ECONOMY
Castilla:
first half of 16th c: expansion → wealth from America.
second half, growth stopped due to:
profits weren't invested in improving agriculture or crafts
most money went to pay the debts of the Crown: finance the imperial wars and commercial debt.
Philip II declared bankruptcy 3 times (1557, 1575, 1596)
inflation in the price of products:
increase in precious metals from the Americas
growth of population and demand
between 1500 and 1600 prices rose by 400%

17. Only wool production and textile industry experienced an increase.

20. ECONOMY
Aragon:
decline because much of the trade activity moved from the Mediterranean to the Atlantic Ocean as a consequence of the Columbian exchange.

22. ECONOMY - Charles V and Philip II's war sent Spain to bankruptcy.
- Despite the gold and silver that came from America, the Spanish Monarchy needed loans from bankers.
- Philip was forced to declare bankruptcy several times.