Essence and types of mercantilism

main form of state participation in the economy, according to the mercantilists, to become state protectionism.It is high import duties and granting subsidies to domestic producers.The mercantilists believed the main purpose of the state of maximum accumulation of income.It should spend less than their income, which excludes the formation of the national debt.

accepted to distinguish two types of mercantilism - early and late.

Early mercantilism existed in the last third of the 15th-mid 16th century.For it was characteristic of the theory of the balance of the money, which justified the policy of increasing cash balance.The important thought hold precious metals in the country.The export of gold and silver, as well as local money strictly persecuted.The main point of mercantilism was also a maximum limit imports of go
ods for which duties were set high.Improving the balance of trade was seen not only as a way to increase government revenue, and employment growth.

Late mercantilism (2nd half of the 17th century 16) based on a system of trade surplus, which has replaced the money.Its key principle became: "Buy - cheaper to sell - more expensive."The policy of mercantilism aimed at state support for the development of the domestic industry.At the same time severe restrictions on foreign trade were removed.But the state was to protect the population from degradation posed by free trade.

political significance of mercantilism Mercantilism

originally interpreted the relationship between politics and economics.The State acted as a basic institution of the accumulation of capital that reflects the realities of the day.In this mercantilism was the class nature and reflect the interests of the bourgeoisie.In this mercantilism it was at the origin of scientific bourgeois economy.

Mercantilism as a state policy in the field of economics was implemented in some periods in many countries.It was adopted by Britain, Austria, Prussia, Sweden, France, Russia (under Peter the Great, Nicholas I).According to historians, it was a source of mercantilism industrial growth after the revolution in England.In general, the merits of mercantilism include its ability to create strong centralized nation-states and to ensure their competitiveness in the global arena.

mercantilist Criticism based on the fact that it is now obsolete.So, it is based on the principles of the inelasticity of demand and limited individual needs.Mercantilists see the economy as a zero-sum game, iewin one for the other - a loss.They are at the forefront of the commercial capital, although it was historically justified.The fact that it is preceded by the appearance of industrial capital.Adam Smith pointed out that the accumulation of precious metals does not necessarily lead to an increase in consumption, and this is the basis of wealth.