3.4- Necker and the Necklace
Revolutions
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Calonne's Spending Strategy
- Charles Alexandre de Calonne became Controller General of Finances in November 1783.
- He believed the best way to get out of debt was to spend more money, a concept called "useful splendor."
- His plan involved borrowing more, hoping new loans at lower rates would eventually pay off higher-rate loans.
- Instead of cutting spending, he increased it at Versailles to reassure creditors of the monarchy's financial health, making royal loans seem like safe investments.
- This strategy temporarily worked, securing hundreds of millions of livres in new debt, but doubts persisted.
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