nore the national debt and other extraordinary expenses. This publication was widely circulated and the people were seeing Necker as a hero because he seemed to have saved the government from bankruptcy. Necker's report was eventually exposed, and he was dismissed shortly afterwards.Besides the debt caused by the Seven Year Wars, France also supported America in its attempts to win the American Revolution. Half of the country's budget was used to pay off these debts. Tax collection had been an utter disaster. The taxes were different in each region. Private businesses would collect the taxes. The government would receive a loan from the businesses and, in turn, the businesses would directly collect the taxes. Then the businesses would keep the principal and the interest on the loans and would pay the balance of the money to the government. The businesses were usually corrupt. They would withhold some of the money from the government. The tax payers' money was not all going to the government. Again, the third estate was being ripped off by the chaotic system of tax collection brought about by an even more chaotic monarchy. Due to the severe financial crisis in France, there was an inflation in prices. This triggered an effect that was detrimental to the third estate. Most of an average household's income went to purchasing bread. Also, there was an uprise in unemployment. This inflation might have been favorable for the uprising businesses who had a supply of capital. However, it did not last long.While the members of the third estate were living in severe poverty because of the heavy taxation, both the members of the first and second estates were enjoying a life of luxury. This was brought about by means of an inefficient and unfair system of taxation. The king and his nobles had no expense spared to them even though the country was virtually bankrupt. This is an issue concerning the very fiber of humanity itself....
