What is mercantile capitalism how is it different from industrial capitalism?
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Mercantilism is a national economic policy designed to maximize the trade of a nation and, historically, to maximize the accumulation of gold and silver. Mercantilism was dominant in modernized parts of Europe from the 16th to the 18th centuries.
The Old English Empire would be a classic example. In 1776, countries measured their wealth by how much gold and silver they had in the coffers. If a country increased its hoard, it was assumed the country was becoming richer, and the people more well off. If it declined, it was assumed the country was growing poorer. The complexities of GDP and standard of living were not easy to measure in those days. (They still aren’t all that easy to measure, even with our modern technology). So, gold was it. I think Silas Marner was an English story, was it not?
Since accumulation of precious metals was a measure of success, England’s policy favored exporting lots of good, and importing less goods, thus creating a positive inflow of gold. Most countries back then taxed imports (further increasing the rate at which they accumulated gold). They favored trade — often buying an item cheaply (such as tea) marking up it’s price and then selling to someone else.
Imagine the reaction of the Yanks when England delivered tea, and announced that a tax would be paid for the tea, presumably in gold and silver. This was essentially a way to rob the colonies of gold and transfer it into the King’s coffers. It was an outrageous thing to do, and was partly implemented to punish the belligerent colonists. The Yanks were treated as outsiders under the principles of mercantilism, while being forced to pay for the privilege of being an insider. Hence the Boston Tea Party.
Some historians would say that mercantile capitalism (or just mercantilism) was a big factor that caused the US Revolutionary War against England.
I realize the there are varying interpretations of the word, but that’s how I would treat it. It is an important concept in our history and to helps describe how capitalism has evolved over time.
hope it is helpful .
Mercantilism is a national economic policy designed to maximize the trade of a nation and, historically, to maximize the accumulation of gold and silver. Mercantilism was dominant in modernized parts of Europe from the 16th to the 18th centuries.
The Old English Empire would be a classic example. In 1776, countries measured their wealth by how much gold and silver they had in the coffers. If a country increased its hoard, it was assumed the country was becoming richer, and the people more well off. If it declined, it was assumed the country was growing poorer. The complexities of GDP and standard of living were not easy to measure in those days. (They still aren’t all that easy to measure, even with our modern technology). So, gold was it. I think Silas Marner was an English story, was it not?
Since accumulation of precious metals was a measure of success, England’s policy favored exporting lots of good, and importing less goods, thus creating a positive inflow of gold. Most countries back then taxed imports (further increasing the rate at which they accumulated gold). They favored trade — often buying an item cheaply (such as tea) marking up it’s price and then selling to someone else.
Imagine the reaction of the Yanks when England delivered tea, and announced that a tax would be paid for the tea, presumably in gold and silver. This was essentially a way to rob the colonies of gold and transfer it into the King’s coffers. It was an outrageous thing to do, and was partly implemented to punish the belligerent colonists. The Yanks were treated as outsiders under the principles of mercantilism, while being forced to pay for the privilege of being an insider. Hence the Boston Tea Party.
Some historians would say that mercantile capitalism (or just mercantilism) was a big factor that caused the US Revolutionary War against England.
I realize the there are varying interpretations of the word, but that’s how I would treat it. It is an important concept in our history and to helps describe how capitalism has evolved over time.
hope it is helpful .
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The theory and system of political economy prevailing in Europe after the decline of feudalism, based on national policies of accumulating bullion, establishing colonies and a merchant marine, and developing industry and mining to attain a favorable balance of trade.
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