So much new capital also inflated the cost of Spanish made goods, destroying the manufacturing base of the country as well. This encouraged the consumption of cheaper imports from other areas of Europe as Spanish manufacturing trailed behind in both quality, quantity, and technological improvements. Eventually Spain passed into semi-oblivion as the empire weakened and consumers turned to the English, French, and Dutch.
Too much money also encouraged the Spanish crown to pursue expensive foreign wars in North Africa, Italy, and the Netherlands. These wars drained the crown of it’s monies and further decayed an already weakened economy.
Does anyone else see a correlation between 16th Century Spain and 21st Century USA?
The indebtedness to Asia, the consumable culture, the extraction of natural resources with abandon, the tax rates, the wars, the expansion of the money supply – all kinda eerie, no?
I’m not saying that money is bad. Money in itself isn’t bad, but too much of it in a short period of time does tend to distort your view of reality. “Money won’t change me” is the usual claim … not 100% true but even if it doesn’t affect you, it WILL alter the choices that are available to you. That in itself will change you because we are the sum total of the choices we’ve made over our lifetime.