mercantilismiin

Mercantilism was an economic theory and practice that dominated European economic thought and policies from the 16th to the late 18th century. It posited that a nation's wealth and power were best served by increasing exports and collecting precious metals in return. The core belief was that the world's wealth was finite, and therefore one nation's gain was another nation's loss.

Key tenets of mercantilism included a strong emphasis on accumulating gold and silver, as these were seen as the primary indicators of national wealth. Governments actively intervened in their economies to achieve these goals. This intervention often took the form of imposing tariffs on imported goods to discourage consumption of foreign products and protect domestic industries. Conversely, they promoted exports through subsidies and monopolies.

Colonies played a crucial role in mercantilist policy. They were viewed as sources of raw materials and captive markets for manufactured goods from the mother country. This relationship was often exploitative, with colonial economies structured to benefit the colonizing nation. Trade was strictly regulated to ensure that wealth flowed to the home country.

While mercantilism fostered the growth of national industries and laid the groundwork for early industrialization in some European nations, it also led to trade wars and fueled colonial resentment. The system began to decline in the late 18th century with the rise of more liberal economic ideas, most notably those espoused by Adam Smith and the principles of free trade.