Murray's Social Studies

A number of ill-advised financial maneuvers in the late 1700s worsened the financial situation of the already cash-strapped French government. France’s prolonged involvement in the Seven Years’ War of 1756–1763 drained the treasury, as did the country’s participation in the American Revolution of 1775–1783. Aggravating the situation was the fact that the government had a sizable army and navy to maintain, which was an expenditure of particular importance during those volatile times. Moreover, in the typical indulgent fashion that so irked the common folk, mammoth costs associated with the upkeep of KingLouis XVI’s extravagant palace at Versailles and the frivolous spending of the queen, Marie-Antoinette, did little to relieve the growing debt. These decades of fiscal irresponsibility were one of the primary factors that led to the French Revolution. France had long been recognized as a prosperous country, and were it not for its involvement in costly wars and its aristocracy’s extravagant spending, it might have remained one.

 

Source: http://www.sparknotes.com/history/european/frenchrev/section1.rhtml