During much of the seventeenth century, the Netherlands was a wealthy, prosperous republic and one of the major powers on the world stage. During the eighteenth century, economic stagnation and decline dominated. The gap between rich and poor quickly widened. Around 1750, the Republic no longer counted internationally. What went wrong?
Today, most countries live peacefully side by side. Wars have become incidents. When a war breaks out somewhere, the whole world is committed to quickly restoring peace. In the Europe of the seventeenth century there was almost a constant war. The European royal houses fought each other in alternating coalitions to prevent one from gaining the upper hand. Long-lasting peace was an exception. The Republic of the Seven United Netherlands also had to play this game and was continuously involved in those wars.
Between 1702 and 1713, the Republic, as a major European power, had participated in the War of the Spanish Succession. Together with Prussia and England, among others, the Netherlands went up against Louis XIV ('The Sun King'), who had claimed the Spanish throne for his grandson. This was the third major war against France since the Disaster Year of 1672, and the French danger was always lurking in the intervening period as well. Some historians therefore speak of a 'forty year war' against France, which therefore only ended in 1713.
Very high debt
These protracted wars were followed by a rare period of peace. By 1747, The Republic had not waged a war for thirty-four years. Such a long period of peace normally allows a country to build and maintain an army. But the 'Forty Years' War' against France had cost the Republic a great deal of money. Due to the debt burden, the Republic could hardly keep an army on its feet.
Moreover, because of the peace, the need for joint action disappeared. Holland needed money to protect its trade routes, but the other provinces refused to pay for it. In the eighteenth century it became more and more 'every man for himself' in the Republic.
The united cooperation disappeared and as a result of the many exhausting wars, the Republic was left with a towering debt burden. Countries such as England and France pursued a targeted government policy to get goods from overseas themselves instead of buying them on the market in Amsterdam. The economic strength of Amsterdam, and thus of the Republic as a whole, declined.
When a large French army invaded the Southern Netherlands in 1747, the Republic was barely able to defend itself, despite a relatively long period of peace. A few fortified towns deemed 'impregnable', such as Bergen op Zoom and Maastricht, fell into French hands. It was a clear sign that the Republic's heyday was over.
Charity and Poorhouses
Fortunately, the regions, especially Holland and Zeeland, had gotten quite a bit of fat on their bones during the Golden Age. Bitter poverty did not immediately strike. In the first half of the eighteenth century, the middle class in particular had the deceptive idea that things were even better. Wages had always been relatively high in the Golden Age. In the eighteenth century, wages had remained the same, but the cost of living had fallen.
After 1750, that slowly changed. The population grew throughout Europe. Demand for foodstuffs rose, and so did prices. Wage recipients had to spend an increasing proportion of their income on food, forcing them to cut back on other things. As a result, demand for industrial products declined, which in turn cost jobs. More and more people became dependent on the charities of wealthy townspeople, or spent their days in increasingly crowded poorhouses. By the end of the eighteenth century, the Republic had virtually nothing to contribute internationally. The game in which the Republic entered as a full-fledged player a century earlier was now played by only five great powers:England, France, Austria-Hungary, and two emerging superpowers, Prussia and Russia.
All in all, the differences between rich and poor in the Republic were increasing. The size of the middle class (consisting mainly of small merchants and craftsmen) decreased and the underclass grew. This was particularly noticeable in the cities. Given the increasing demand for agricultural products , many people seized the opportunities and moved from the city to the countryside . Overseas trade remained important, but the shine had worn off. From a trading nation, the Netherlands gradually became a more agricultural society.