Difference between revisions of "Mercantilism"
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Mercantilism once was the economic and trade policy of several European countries, such as [[United Kingdom|Britain]] and [[France]], and their colonial empires. Britain's government-controlled [[East India Company]] played a central role during the [[Boston Tea Party]] crisis. The ''India'' company routinely held exclusive [[monopoly]] powers granted to them by the crown. | Mercantilism once was the economic and trade policy of several European countries, such as [[United Kingdom|Britain]] and [[France]], and their colonial empires. Britain's government-controlled [[East India Company]] played a central role during the [[Boston Tea Party]] crisis. The ''India'' company routinely held exclusive [[monopoly]] powers granted to them by the crown. | ||
| − | As mercantilism was the British policy at the time of the [[American Revolution]], the [[United States]] initially rejected mercantilism | + | As mercantilism was the British policy at the time of the [[American Revolution]], the [[United States]] initially rejected mercantilism. Though many of the [[Federalist]]s, especially [[Alexander Hamilton]], were huge proponents of mercantilism, disagreeing only with who was in charge,<ref>[https://www.cato.org/blog/alexander-hamilton-banking-mercantilist Alexander Hamilton, Banking Mercantilist]</ref> by and large the Founding Fathers found the work of [[Adam Smith]] with free capitalist markets and economic individualism to be much the superior.<ref>[https://www.google.com/books/edition/Economics/O5i-d3thv-4C?hl=en&gbpv=1&pg=PA52 Economics - Theory and Practice]</ref> |
==References== | ==References== | ||
Revision as of 05:32, January 1, 2020
Mercantilism is a policy for a nation to increase its wealth based on exporting more goods to other nations and territories than importing from them. Relying almost exclusively upon interventionist and centralized government, a mercantilist system relies heavily upon giving subsidies to politically favored businesses, often under the guise of infrastructure development combined also with a central bank with monopoly power. Additionally protectionism is favored and the nationalization of industries is welcomed, generally if it promotes export and trade.[1]
An excess of exports over imports increased the balance of trade and the acquisition of gold by the nation. Also, acquiring and using colonies to supply raw materials and provide foreign markets was a key aspect of mercantilism.
Mercantilism once was the economic and trade policy of several European countries, such as Britain and France, and their colonial empires. Britain's government-controlled East India Company played a central role during the Boston Tea Party crisis. The India company routinely held exclusive monopoly powers granted to them by the crown.
As mercantilism was the British policy at the time of the American Revolution, the United States initially rejected mercantilism. Though many of the Federalists, especially Alexander Hamilton, were huge proponents of mercantilism, disagreeing only with who was in charge,[2] by and large the Founding Fathers found the work of Adam Smith with free capitalist markets and economic individualism to be much the superior.[3]