As a consequence of the Renaissance, the medieval, feudal society in Western Europe was deteriorating in the sixteenth century and being superseded by mercantilism especially in England, France, and Holland. Mercantilism was a very important historical process.
History of Economic Analysis. The monarch and the merchant-capitalists planed and governed the economic life to secure monopoly gains. Economic efficiency needs productive workers, of great passion and high qualifications. The policy was of keeping labor poor. This economic system has its special principal rules on nationalism, and eventually follows its inevitable trend to failure after years.
Get professional essay writing help at an affordable cost. Colbert sometimes used unscrupulous means to accomplish his purposes and was known for asserting the power of state. Mercantilist nations began establishing colonies which they exploited and trading posts for the benefit of the mother country, since the settlements could provide raw materials for domestic manufacturing that would otherwise have required importation from other countries.
But what does mercantilism really mean?
Suppose there is much enough gold in a place, it will be undoubtedly depreciated. The Fable of the Bees: A Treatise of Economics.
They neglected and eliminated competitive advantage, and actually violated the nature of economy. Isolated feudal estates were being replaced by centralized nation-states as the center of power. However, many countries became in the red due to the innumerable payments to wars; for example, the sinking of Spanish Armada in some sense destroyed the empire.
For instance, in this period the government usually rewarded manufacturers to export their goods and limited the importation of external goods; therefore domestic market was less competitive, legal monopolies drove up prices, consumers were hurt, the purchase power declined, and the further development of economy was affected.
Ships bearing the flag of the mother country encouraging monopolization of colonial trade could transport goods. Adam Smith, the "Father of Modern Economics", had something to say about mercantilism: Even children as young as age four were sent to workhouses for a mere two hours of teaching, only to exhaust the remainder of the day working according to their ability, age, and strength.
Medieval, feudal institutions were destabilized by the escalating use of money and by greater dependence on trade within the economy. If there were a lack of credit, then companies would be forced to borrow money at high interest rates. A Short History of Mercantilism. Also to seize and control colonies, a great number of money was spent to recruit soldiers and purchase warships.Colonial America was the first sign of mercantilism and capitalism.
Capitalism replaced the older economics system feudalism. In the feudalism system, warrior-lords provided protection to inhabitants of smaller areas. - Mercantilism Essay England in the 17th century adopted the policy of mercantilism, exercising control over the trade of the colonies, thus greatly affecting their political and economical development.
Mercantilism focused on how this trade could best help the colonies. But in fact, Mercantilists misunderstood the concept of mercantalism, arguing that an increase in the money supply meant that everyone gets richer, when actually only the 4/4(1). mercantilism in Europe, it’s impossible to project how the world might look today.
It’s. possible that, without mercantilism, we would still be living in a feudal, caste-like system. comprised of only governmental elitists and a the peasant class, with very little in.
between. Mercantilism gave rise to the middle class, the largest group in the West. Mercantilism is the principle that all colonies exist for the benefit of the mother country.
Mercantilism changed economy, but also signified the transition from town to national units of social living, and frowned upon the conservativeness of guilds.
3/5(4). Mercantilism was a dominant economic school on Europe in XVI-XVIII century. The theory suggests that the global turnover of international trade is constant and the prosperity of a nation depends on the government ability to support a positive balance of trade with other nations.Download