Why do economic decline and fiscal difficulties often accompany the late years of a dynasty?

There are multiple factors that can lead to economic decline and fiscal difficulties in the late imperial period:

Malfeasance and Political Corruption of Rulers: In the late dynasty, issues of malfeasance and political corruption among rulers often intensify. Phenomena such as officials’ embezzlement, bribery, and improper appointments lead to a decline in government efficiency, making it unable to effectively manage the national finances and economy. Such corrupt practices weaken fiscal revenue, resulting in financial hardship.

Excessive Taxation and Intensified Exploitation: To fill the fiscal deficit, the court often increases the burden of taxes and the collection of other tribute goods. This forces farmers and merchants to bear heavy burdens, leading to hindered economic development, decreased productivity, and even sparking social discontent and protests.

Obstruction of Domestic and International Trade and Market Contraction: The late imperial period frequently faces issues of obstructed domestic and international trade. Internal unrest and external wars cause interruptions in transportation and trade routes, affecting the circulation of goods and the development of the market economy. Market contraction reduces commercial activities, further exacerbating the economic decline.

Decline in Agricultural Production and Frequent Disasters: Agriculture is the foundation of a dynastic economy, but in the late imperial period, agricultural production often declines. Factors such as long-term warfare, land abandonment, and peasant uprisings lead to a decrease in agricultural productivity. Simultaneously, natural disasters such as drought, floods, and locust plagues occur frequently, resulting in reduced or destroyed harvests, further weakening the economic foundation.

Social Instability and Warfare Affecting Investment and Development: The late imperial period is often accompanied by social instability and warfare. Turbulent situations, including internal rebellions, external threats, and popular uprisings, hinder investment and development. Merchants and landlords may be reluctant to invest in economic growth or transfer assets, leading to a decline in economic vitality.

These factors interact to cause economic decline and fiscal difficulties in the late dynasty. The combined effects of rulers’ malfeasance and political corruption, excessive taxation and exploitation, trade obstruction, agricultural decline, and social upheaval ultimately lead to economic distress and fiscal collapse.