what did spain spend most of its new wealth on
Economic history of Spain Following the discovery of America and the colonial expansion in the Caribbean and Continental America, valuable agricultural products and mineral resources were introduced into Spain through regular trade routes. New products such as potatoes, tomatoes and corn had a long-lasting impact on the Spanish economy, but more importantly on European demographics. Gold and silver bullion from American mines were used by the Spanish Crown to pay for troops in the Netherlands and Italy, to maintain the emperor's forces in Germany and ships at sea, and to satisfy increasing consumer demand at home. However, the large volumes of precious metals from America led to inflation, which had a negative effect on the poorer part of the population, as goods became overpriced. This also hampered exports, as expensive goods could not compete in international markets. Moreover, the large cash inflows from silver hinder the industrial development in Spain as entrepreneurship seems to be dispensable.[1]
History of Spain Importantly, Spain never saw a decline in interest in classical culture to the degree observable in Britain, Gaul, Lombardy and Germany. The Visigoths, having assimilated Roman culture during their tenure as foederati, tended to maintain more of the old Roman institutions, and they had a unique respect for legal codes that resulted in continuous frameworks and historical records for most of the period between 415, when Visigothic rule in Spain began, and 711, when it is traditionally said to end. However, during the Visigothic dominion the cultural efforts made by the Franks and other Germanic tribes were not felt in the peninsula, nor achieved in the lesser kingdoms that emerged after the Muslim conquest.