By the late 1780s, France had been plunged into economic crisis by its losses in the French and Indian War and the costs of supporting the American War of Independence. The apparent incapacity of the monarchy to address the crisis, the influence of Enlightenment ideas, the extravagance of the court, the poverty and heavy burden of taxation among the peasantry contributed to the upheaval of 1789 that ended the rule of the Bourbons and established the First Republic.