Mercantilism a popular economic philosophy

When Britain introduced the Sugar Act and Navigation Acts to force colonists away from foreign products, the plan backfired by angering the colonies and promoting dissatisfaction with British rule.

Because the war was expensive, the British believed that colonists should help pay for it. Taxation was needed to prop up the army and navy. The smugglers would pay bribes to British customs officials who were hired to regulate trade in the colonies.

It was argued that the state should franchise out the leading merchants in promising industries to create exclusive monopolies and cartels. Mismanagement of printed currency resulted in periods of inflation. The colonies were captive markets for British industry, and the goal was to enrich the mother country.

Eventually it would no longer be cost-effective to export goods from the high-price country to the low-price country, and the balance of trade would reverse.

Colbert had studied the previous theorists of a foreign-trade-driven economy and was in a unique position of authority to execute their ideas. With the establishment of overseas colonies by European powers early in the 17th century, mercantile theory gained a new and wider significance, in which its aim and ideal became both national and imperialistic.

The expansion of the slave trade: Defenders of mercantilism argued that the economic system creates stronger economies by bringing colonies and founding countries together.

This school argues that rent-seeking merchants and governments developed and enforced mercantilist policies. Mercantilists also believed a large population was integral to the domestic labor force of a nation. Founding nations would export the products of their manufacturing to the colonies.

British mercantilism thus mainly took the form of efforts to control trade. Overall, however, mercantilist policies had a positive impact on Britain helping turn it into the world's dominant trader and the global hegemon.

A fourth explanation lies in the increasing professionalisation and technification of the wars of the era, which turned the maintenance of adequate reserve funds in the prospect of war into a more and more expensive and eventually competitive business.

We will write a custom essay sample on Mercantilism: The returns to the high-cost apparel will be lower than the returns from a more appropriate set of activities. Specialized production leads to economies of scale which, in turn, lead to higher productivity and economic growth.

The British put restrictions on how their colonies spent their money so that they could control their economies.

When was the economic philosophy of mercantilism popular? ?

Economic history of Canada France imposed its mercantilist philosophy on its colonies in North America, especially New France.

Since then it has been given countless addit…ional definitions most of which have a common theme of "limited earth".

Mercantilism

This book outlines the basics of what is today known as classical economics. Further, under a system of free trade, nations are more prosperous because they are not engaged in a zero-sum game. Its trade routes were protected by the Royal Navy and its high-ranking members became very influential in determining British foreign policy.

The Declaration of Independence

It was argued that the state should franchise out the leading merchants in promising industries to create exclusive monopolies and cartels. Because they were gaining so much power, smugglers increased their secret trade to almost every port in the colonies.

Founding nations would export the products of their manufacturing to the colonies.

Mercantilism: A Popular Economic Philosophy Essay

The British knew that the colonies were benefiting from goods from the Dutch, French, and Spanish, however.

They were granted "shares" of the company profit—the first traded corporate stocks. American shippers became more and more rebellious against trade restrictions with other countries.

This is an example of the reciprocal benefits of trade whether due to comparative or absolute advantage.

The Declaration of Independence

Mercantilism was a popular economic philosophy in the 17th and 18th centuries. Keynes also noted that in the early modern period the focus on the bullion supplies was reasonable. The second school, supported by scholars such as Robert B. They can also include many things that are impossible "to possess", but can still be used to produce income such as a working knowledge of how to produce technology that is licensed in the public domain like OpenGL.

In an era before paper moneyan increase in bullion was one of the few ways to increase the money supply. In France, economic control remained in the hands of the royal family, and mercantilism continued until the French Revolution.

The same is true of production. A boycott of British products began that dropped imports by a full one-third. Nov 24,  · Mercantilism was the economic philosophy underlying early European colonial policy. The object of mercantilism was to increase the wealth.

Sep 28,  · How would technology advocates (and the economic model) address the concept of "limited" resources.? Why don't banks print infinite money? Do you agree or disagree w/ the statement The economic growth model is reactive whereas environmental sustainability efforts are proactive.?Status: Resolved.

Mercantilism Mercantilism was a sixteenth-century economic philosophy that maintained that a countrys wealth was measured by its holdings of gold and silver (Mahoney, Trigg, Griffin, & Pustay, ).

Mercantilism: A Popular Economic Philosophy Essay

This recquired the countries to maximise the difference between its exports and imports by promoting exports and discouraging imports. Mercantilism was a popular economic philosophy in the 17th and 18th centuries.

In this system, the British colonies were money makers. The British put restrictions on how their colonies spent their money so that they could control their economies. Mercantilism was a popular economic philosophy in the 17th and 18th centuries.

In this system, the British colonies were money makers. The British put restrictions on how their colonies spent their money so that they could control their economies. Mercantilism was a popular economic philosophy in the 17th and 18th centuries.

In this system, the British colonies were moneymakers for the mother country. The British put restrictions on how their colonies spent their money so .

Mercantilism a popular economic philosophy
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Mercantalism: Lesson Plan