Definition of Mercantilism:
Body of economics thought popular during the mid 16th and late 17th centuries. It held that money was wealth, accumulation of gold and silver was the key to prosperity, and one nations gain was anothers loss. Supported by economists such as Gerard de Malynes (1586-1641), Edward Misselden (1608-54), and Sir Thomas Mun (1571-1641) in the UK, Jean Baptiste Colbert (1619-83) in France ,and Antonio Serra in Italy (1570-?), it exhorted governments to maintain surplus of exports over imports through tariffs (duties), colonialism, and other such measures. Mercantilisms demise was initiated by David Hume, Adam Smith (who coined the term), and other classical economist (see Classical Economics) who saw it as serving only the merchant class and argued that real wealth was to be equated with full employment through greater production of goods and services. In more recent times, the mercantilism dogma was revived by the UK economist John Maynard Keynes (1883-1946) when he stated that a surplus in balance-of-trade stimulates demand, thus increasing the national wealth. When corporations, politicians, and unions demand control over imports through higher-duties to protect local jobs and industries, they are resorting to mercantilism. See also laissez faire economics.
First popularized in Europe during the 1500s, mercantilism was based on the idea that a nation's wealth and power were best served by increasing exports, in an effort to collect precious metals like gold and silver.
Belief in the benefits of profitable trading; commercialism.
Mercantilism was an economic system of trade that spanned from the 16th century to the 18th century. Mercantilism is based on the principle that the world's wealth was static, and consequently, many European nations attempted to accumulate the largest possible share of that wealth by maximizing their exports and by limiting their imports via tariffs.
How to use Mercantilism in a sentence?
- Mercantilism was an economic system of trade that spanned from the 16th century to the 18th century.
- Mercantilism was based on the idea that a nation's wealth and power were best served by increasing exports and so involved increasing trade.
- Johnny, Dave and Susie are competing for resources and land in Settlers of Catan, a game where ever increased production, coupled with selfish trading behavior, rewards the players with the strongest sense of mercantilism .
- Under mercantilism, nations frequently engaged their military might to ensure local markets and supply sources were protected, to support the idea that a nation's economic health heavily relied on its supply of capital.
- Who benefits from mercantilism is no mystery: look at the list of lobbyists and signatories to the complaints.
- The philosophy of mercantilism in centuries past was a problem for foreign policy, and frequently caused stress between nations. The countries who held this belief close to their heart frequently were at conflict with their neighbors.
- The economy of the United States started to decline when they abandoned mercantilism in favor of cheaper outsourced labor in other countries.
Meaning of Mercantilism & Mercantilism Definition