Final answer:
John Law's plan, known as the Mississippi Company Scheme, had negative consequences such as the financial collapse of the French economy, the erosion of the monarchy's authority, and the exacerbation of social inequality.
Step-by-step explanation:
John Law's plan, known as the Mississippi Company Scheme, had negative consequences. One of these consequences was the financial collapse of the French economy. Law's plan involved issuing paper money and using it to invest in the Mississippi Company, which led to a speculative bubble and a subsequent crash in 1720. This resulted in economic hardship for many people and damaged their trust in the financial system.
Another negative consequence of Law's plan was the erosion of the French monarchy's authority. The plan gave Law considerable power and influence, which he abused for personal gain. This undermined the credibility and legitimacy of the monarchy, leading to a loss of faith in the government.
Furthermore, Law's plan contributed to social inequality. The wealthy and privileged classes benefited from the scheme while the average citizens suffered. The plan was based on false promises of wealth and prosperity, and those who fell for it were left with financial ruin.