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Shortly before the French Revolution began, sometime in the late 1770s, the French economy was in very bad shape. France had been influenced greatly by the revolution in America. France had given millions to support the colonies in America. Also, the fact that King Louis XIV had ordered the built of Versailles in 1682 drained the treasury immensely. The succeeding King Louis XV and King Louis XVI tried to fix the huge debts by making the commoners (the bourgeoisie) pay very high taxes.

By 1789 France had no money left and France was officially declared bankrupt.

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