[Cronos]

On the contrary, Spain had it's high points right after the reconquista (1490), right up until the late 1600s when they had dynastic crises. The expulsion, while deplorable, didn't hurt Hispania.

Besides, the expulsion needs to be understood from the point that it was primarily the expulsion of Mulsims from Spain.

[muawiyah]

Right, 60,000 Jews were sent packing, 80,000 were converted, and virtually no Moslems left outside of the post-Reconquista property owners and elite (and even if they'd wanted to convert, that particular class was unwelcome).

BTW, there were many fewer people around in those days than there are now.

Spain destroyed its industrial base in 1492. The discovery of gold in the Americas circa 1521 allowed their bankers in Belgium to pay their bills, but, alas, sometimes it's good to have your own industrial workforce and machinery around. By 1600 Spain had lost its most ambitious people to the Americas, the gold ran out, Portugual (a more enlightened place) was seizing back its independence, and Spain was spent.

The 1500s were a period of serious decline for Spain as a viable nation. All they had was money.