Economic developments; royal finances, policies and impact of overseas empire
Philip II ruled a vast empire that poured silver into Spain from the Americas. Yet he still ran out of money repeatedly, because wars and debts consumed wealth faster than the colonies produced it.
Real World
Philip's four bankruptcies despite owning the world's richest silver mines resemble a lottery winner who goes broke through debt-fuelled spending — the Potosí silver functioned as collateral for ever-larger loans from Genoese bankers, not as lasting wealth.
Exam Focus
Always distinguish revenue sources (silver, Castilian taxes) from expenditure causes (war, debt servicing) — vague answers about 'Spain being rich but poor' score poorly.
Essay Framework
Use PEEL to structure every paragraph. Tap each step for guidance and an example.
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