Spanish Economy & Society: 16th & 17th Centuries
Spanish Economy and Society in the 16th Century
Spain in the 16th century was marked by population growth in Castile, especially in the southern regions, due to their closer ties to trade and American routes. However, the population of the Crown of Aragon increased only marginally.
Because of the demand for products from America, agriculture grew steadily, although arable lands were scarce and primarily in the hands of nobles and clerics. High prices forced many farmers and small landowners to mortgage their farms or take out loans. In short, the economic expansion of this period neither improved nor transformed the agricultural system inherited from the Middle Ages.
In the early 16th century, the handicraft industry also expanded due to demand from the American market. This was the era of Basque metallurgy, shipbuilding in Catalonia and Valencia, and textiles in Seville, Toledo, Cuenca, and Segovia. The monarchy had previously protected the Flemish textile industry, but foreign competitors began offering higher quality products at better prices.
Trade grew in the towns of Castile and the Atlantic ports, but in the Crown of Aragon and the Mediterranean, port trade declined due to the Turkish presence.
In Castile, low production was unable to meet the demand for products, and attempts to increase American trade were unsuccessful.
The Estate Society: Noble Predominance
Society was dominated by the most conservative groups. Being a hidalgo (noble) was highly valued, even if one lacked wealth. The nobility accumulated many assets and commonly purchased securities.
The clergy was divided into the higher clergy, composed of archbishops, cardinals, and abbots, who were similar in status to the nobility, and the lower clergy, consisting of priests and monks, who lived much like the peasants. The manor was the most widespread form of land ownership in this society, and many were ecclesiastical.
Among the underprivileged were the taxpayers, who, unlike the nobility, were common people, mostly peasants, forced to pay taxes. There were also several distinct groups according to their religious background: the Moorish and Jewish converts. They often practiced their religions in secret because they were persecuted and marginalized, as “purity of blood” was important in this society. The Inquisition, whose practices included public Autos-da-fé, played a significant role. An important figure of the Inquisition was Torquemada, who judged Jews and converts swiftly.
The 17th Century: The Decline of the Empire
After the death of Philip II in 1598, three successive monarchs effectively renounced their governmental duties, delegating them to private individuals or validos. These validos often used their power for personal gain, increasing corruption. Philip III had a short and peaceful reign, although it saw the expulsion of the Moors. The tasks of government were left to his favorite, the Duke of Lerma.
With Philip IV in the mid-17th century, there were many difficulties in maintaining the empire. Philip IV left his power to Gaspar de Guzman, a well-known and powerful figure whose government was authoritarian and centralized. He tried to integrate all the kingdoms into one common state with the same laws, but his attempt failed and caused major internal strife.
The dynasty ended with Charles II, who died without an heir.