6. The Spanish Empire
The Spanish Empire’s infusion of New World wealth led to extravagant royal spending, inflation, and inertia, leaving Spain vulnerable to internal and external crises. The massive influx of gold and silver from the Americas caused widespread inflation, eroding the purchasing power of the Spanish populace. This economic strain was exacerbated by the monarchy’s lavish expenditures, which drained resources that could have been used for military defense and economic development. Additionally, the empire’s overextension in military campaigns further strained its finances and weakened its global position. (nationalgeographic.com)
