Mercantilism

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Mercantilism

Post  NellieBennett on Sun Jan 27, 2013 11:34 pm

During the age of exploration, European colonists found ways to produce lots of raw materials which they later send to Europe. This caused the amount of money available in Europe to increase. English monarchs adopted a new financial system which was intended to fortify their national wealth. This new economic system was known as mercantilism. Mercantilists believed that the monetary wealth a nation had was measured in the amount of gold and silver they had. Mercantilists believed that in order to boost the amount of gold and silver a nation must establish a favorable balance trade. In other words a country must export more good than it imports in order to get more money. Other basic pillar of mercantilism was that the colonies existed for the benefit of the mother country. Colonies had raw materials not accessible in Europe, so they provided these resources to the parent country, which later turned them into manufactures goods and sold them to other nations. You might be wondering why the colonies did not set up their own industries. The answer is because they were not permitted to do so. European rulers had strict laws in which they prohibited the colonies to make their own manufactured goods and trade with other colonies or countries. European rulers also established taxes on imported goods which are called tariffs. They did this to protect local industries from overseas competition by raising the price of imported goods. The way the people would obtain their good form the local merchants because it was cheaper.

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Re: Mercantilism

Post  AnaMartinez on Sun Feb 10, 2013 3:00 pm

Nice post Nellie! Smile
Here are some facts I found about mercantilism:
- Mercantilist nations were impressed by the fact that the precious metals, especially gold, were in universal demand.
- Foreign trade was favored above domestic trade.
- Treaties were made to obtain exclusive trading privileges.
- Mercantilist ideas did not decline until the coming of the Industrial Revolution and of laissez-faire.
- Oliver Cromwell, after destroying the Stuarts, embraced mercantilist warfare.
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Re: Mercantilism

Post  MariaelenaFarina on Sun Mar 03, 2013 12:19 pm

Great post, Nellie!

This was a really good summary because it talks about the favorable balance of trade, and the fact that mercantilists based the wealth of a nation on the supply of gold and silver. Mercantilism was very important during the 17th and 18th centuries in colonial America. All of the European colonies supplied the raw materials that would be shipped to Europe and be manufactured. All in all, the mercantilist way helped spread new foods, technologies, and maybe even culture, but it mainly benefitted the mother nation in comparison to the colony in the Americas.

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Re: Mercantilism

Post  Brock M. Hay on Tue Mar 19, 2013 8:48 pm


It is never too late to review a topic that we have learned I suppose, although I am interested to ask exactly why you chose to do mercantilism? Another economic philosophy that contradicts mercantilism is the enlightenment belief that goes by the term "lassiez faire" or let it be. This suggests that a government should have minimum influence in a nation's economy and to let businesses do as they please. I seem to cannot remember what this is called though, would anyone care to enlighten me?
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Re: Mercantilism

Post  Mr. Fisher on Wed Mar 20, 2013 10:26 pm

Brock M. Hay wrote:
This suggests that a government should have minimum influence in a nation's economy and to let businesses do as they please. I seem to cannot remember what this is called though, would anyone care to enlighten me?

Capitalism? Libertarianism?
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Re: Mercantilism

Post  Brock M. Hay on Sat Mar 23, 2013 4:40 pm


I believe it was Libertarianism, thanks.
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