The privileged elite in France were exempt from most taxes, while the peasants and workers were burdened with heavy taxes. The peasants also suffered from a system of feudal dues and obligations, which further reduced their income. In addition, the French state was in debt, and the government was constantly raising new taxes to pay off its debts. This led to a sharp increase in the cost of living, which made it difficult for many people to make ends meet.
The financial crisis of the French state was caused by a number of factors, including the American Revolutionary War, which had drained the French treasury, and the extravagant spending of the French court. The French state was also burdened by a heavy debt, and the government was constantly raising new taxes to pay off its debts. This led to a sharp increase in the cost of living, which made it difficult for many people to make ends meet.
The combination of social inequality and financial crisis led to widespread discontent in France, which eventually erupted into revolution in 1789. The French Revolution was fought between the privileged elite and the peasants and workers, and it ended with the establishment of a republic based on the principles of liberty, equality, and fraternity.