Final answer:
Caligula's initial acts as emperor included several beneficial reforms and public spectacles, but his reign became marked by cruelty and extravagance after a severe illness. His assassination paved the way for his uncle Claudius to restore stability and financial sanity to the Roman Empire.
Step-by-step explanation:
Caligula's Impact on Rome
Despite Caligula's reputation as a tyrant, his initial acts as emperor were seen as generous and had some positive effects on Rome. Early in his reign, he granted bonuses to the military, destroyed Tiberius's treason papers, ceased treason trials, and recalled those exiled for treason. Moreover, he sought to alleviate burdens from the imperial tax system, exiled certain sexual deviants, and entertained the populace with public spectacles like gladiatorial games.
Caligula's obsession with power led him to spend significantly on displays of power, including executing a mock invasion of Gaul that ended in a Triumph in Rome. His sense of grandiosity was evident when he replaced the heads of god statues with his own and appeared dressed as various gods. These actions reflected not only a self-indulgence but also a focus on constructing an image of all-powerful divinity around the emperorship.
Following a serious illness in 37 CE, Caligula's rule took a turn, as he became crueler and more unpredictable. The emperor grew increasingly paranoid, seeing enemies everywhere and responding with executions and exiles. His self-aggrandizing actions and disregard for Senate traditions fueled discontent among elite Romans, though historians have questioned the extent of his tyranny due to the bias of sources written by those same elites.
Nonetheless, the assassination of Caligula led to the emergence of his uncle Claudius as emperor, who brought stability back to the empire by restoring the treasury and maintaining borders. Unlike Caligula, Claudius established a formal bureaucracy and separated the personal wealth of the emperor from the state budget. In doing so, Claudius marked a return to a more structured and less extravagant imperial rule.