Problem post unification: govt indebtness

Question 1

Following unification, what did the LG absorb?

Answer 1

All of the independent states’ foreign affairs, including their DEBTS

Question 2

What was the total debts of unification?

Answer 2

1500M lire

Question 3

Why was there a need to find substantial amounts of money?

Answer 3

to pay for military and public expenditure

Question 4

Why did the govt had to increase taxation and raise new loans in 1862?

Answer 4

there was a major SHORTFALL between govt income and expenditure- insufficient funds

Question 5

What tax was imposed in 1868?

Answer 5

grist tax on corn

Question 6

What was the impact of the 1868 grist tax?

Answer 6

• led to a fall in living standards
• hit the S hardest
• increase in price of bread meant some faced STARVATION