How did Elizabeth I address economic challenges during her reign?

Elizabeth I addressed economic challenges by implementing fiscal reforms, encouraging trade, and managing inflation through various policies.

Elizabeth I's reign from 1558 to 1603 was marked by several economic challenges, including inflation, debt, and poverty. One of her first actions was to stabilise the currency. The debasement of coinage under her predecessors had led to rampant inflation. Elizabeth reissued coins with higher silver content, which helped restore confidence in English money and curbed inflation.

To tackle the national debt, Elizabeth and her advisors, such as William Cecil, implemented careful fiscal management. They reduced government spending and avoided expensive wars. When military action was necessary, they sought to fund it through more efficient tax collection and loans from wealthy subjects, rather than increasing taxes on the general populace.

Trade was another area where Elizabeth made significant strides. She supported the expansion of overseas trade, which brought wealth into England. The establishment of the East India Company in 1600 opened up new markets in Asia. Additionally, Elizabeth granted charters to various trading companies, which helped to monopolise and regulate trade routes, ensuring a steady flow of income.

Elizabeth also addressed the issue of poverty, which was exacerbated by economic changes and population growth. The Poor Laws of 1597 and 1601 were significant steps in providing relief for the poor. These laws made local parishes responsible for the care of the needy, funded by local taxes. This system aimed to reduce vagrancy and provide a safety net for the most vulnerable.

By implementing these measures, Elizabeth I managed to navigate the economic difficulties of her time, laying the groundwork for a more stable and prosperous England.