Under the economic system of mercantilism, the merchant class paid taxes to support the armies of their nations. What value did the governments of these nations provide as a result?
Answers
Answer:
Answer:
Scottish philosopher Adam Smith coined the term "mercantilism." He criticized what he called the "mercantile system" (or 'merchants' system,' we might say), because it restricted trade and thus restricted economic growth. The mercantile system believed the wealth of the world was a fixed amount, measured primarily in gold and silver accumulated. The system promoted a nation selling its products abroad but not needing to buy from others, or imposing heavy tariffs if importing anything. Commerce was heavily controlled by the government through charters granted to specific trading companies. That's the way that governments enacted policies in favor of the merchant class that supported the country's armies.
Smith countered by advocating a free market -- the opportunity for all nations to increase their wealth by exchanging goods freely with one another according to what would become known as capitalist principles.
Answer:
As a result the government of these nations provide economical support to their armies.
Explanation:
One of the leading expositor of economic thought of eighteenth century Adam Smith introduced the term Mercantile system to describe the system of political economy that sought to enrich the country by restraining imports and encouraging exports.
Mercantilism is an economic policy that is designed to maximize the exports and minimize the imports for an economy.
During this period, military conflict between nation-states was both more frequent and more extensive than at any other time in history. The armies and navies of the main protagonists were no longer temporary forces raised to address a specific threat or objective, but were full-time professional forces.
At that time Each government’s primary economic objective was to command a sufficient quantity of hard currency to support a military that would deter attacks by other countries and aid its own territorial expansion.
In exchange for paying levies and taxes to support the armies of the nation-states, the mercantile classes induced governments to enact policies that would protect their business interests against foreign competition.