Jacques Necker was born in Switzerland and moved to France to embark on a financial career. He was named director general of finance following France’s defeat in the Seven Years’ War. Necker’s main goal was to downplay France’s dwindling economy, which he accomplished by releasing a misleading financial report. He is remembered for his selfishness and providing pensions to nobles in order to boost his popularity (Kagan 355-356). At the beginning of his career, Necker proved to be sly by gaining his early fortune through speculation in the French East India Company (Encyclopedia). Historians believe Necker’s largest mistake was financing French aid in the American Revolution without regards to taxation or a means of replenishing the French budget. In response to the growing public debt, Necker released his “Report to the King,” in which he claimed the debt following the American Revolution was 36,000 livres less than what it actually was. Not only did Necker commit a huge financial mistake, he also lied to cover up the truth, a move that pushed France to the edge of bankruptcy. His lie was discovered and the monarchy required Necker to resign (Britannica).
…show more content…
During his second term, Necker continued his overly optimistic attitude concerning the national debt, which continued to plummet. While presenting a 1789 speech to the Estates General, Necker was not clear on his explanation of political and financial reform, a dangerous occurrence considering many from the Estates General, especially from the Third Estate, became radically reform-minded
During his second term, Necker continued his overly optimistic attitude concerning the national debt, which continued to plummet. While presenting a 1789 speech to the Estates General, Necker was not clear on his explanation of political and financial reform, a dangerous occurrence considering many from the Estates General, especially from the Third Estate, became radically reform-minded