http://en.wikipedia.org/wiki/French_Revolution
Another cause was France’s near bankruptcy as a result of the many wars fought by Louis XV and in particular the financial strain caused by French participation in the American Revolutionary War. The national debt amounted to almost two billion livres. The social burdens caused by war included the huge war debt, made worse by the monarchy’s military failures and ineptitude, and the lack of social services for war veterans. The inefficient and antiquated financial system was unable to manage the national debt, something which was both caused and exacerbated by the burden of a grossly inequitable system of taxation. Meanwhile the conspicuous consumption of the noble class, especially the court of Louis XVI and Marie-Antoinette at Versailles continued despite the financial burden on the populace. High unemployment and high bread prices caused more money to be spent on food and less in other areas of the economy.
