Editing Mercantilism (section)

==Theory==
{{Economic systems sidebar}}
Most of the European economists who wrote between 1500 and 1750 are today generally described as mercantilists; this term was initially used solely by critics, such as Mirabeau and Smith, but historians proved quick to adopt it. Originally the standard English term was "mercantile system". The word "mercantilism" came into English from [[German language|German]] in the early-19th century.

The bulk of what is commonly called "mercantilist literature" appeared in the 1620s in Great Britain.<ref name="Magnusson 2003 46">{{Harvnb|Magnusson|2003|p=46}}.</ref> Smith saw the English merchant [[Thomas Mun]] (1571–1641) as a major creator of the mercantile system, especially in his posthumously published ''Treasure by Foreign Trade'' (1664), which Smith considered the archetype or manifesto of the movement.<ref>{{Harvnb|Magnusson|2003|p=47}}. "According to Adam Smith, the main architect of the mercantile system of economic thinking was the English writer and tradesman Thomas Mun (1571–1641). His main published writings appear in two short treatises, ''A Discourse of Trade from England unto the East Indies'' (1621) and perhaps the more important ''England's Treasure by Forraign Trade'' (1664). Adam Smith picked out this last tract – published posthumously after Mun's death, but probably written during the late 1620s – as the archetype of mercantilist texts; its manifesto."</ref> Perhaps the last major mercantilist work was [[James Denham-Steuart|James Steuart]]'s ''Principles of Political Economy'', published in 1767.<ref name="Magnusson 2003 46"/>

Mercantilist literature also extended beyond England. Italy and France produced noted writers of mercantilist themes, including Italy's [[Giovanni Botero]] (1544–1617) and [[Antonio Serra]] (1580–?) and, in France, [[Jean Bodin]] and [[Jean-Baptiste Colbert|Colbert]]. Themes also existed in writers from the German historical school from List, as well as followers of the American and British systems of free-trade, thus stretching the system into the 19th century. However, many British writers, including Mun and [[Edward Misselden|Misselden]], were merchants, while many of the writers from other countries were public officials. Beyond mercantilism as a way of understanding the wealth and power of nations, Mun and Misselden are noted for their viewpoints on a wide range of economic matters.<ref>{{Harvnb|Magnusson|2003|p=50}}.</ref>

The Austrian lawyer and scholar [[Philipp Wilhelm von Hornick]], one of the pioneers of [[Cameralism]], detailed a nine-point program of what he deemed effective national economy in his ''Austria Over All, If She Only Will'' of 1684, which comprehensively sums up the tenets of mercantilism:<ref>{{Harvnb|Ekelund|Hébert|1997|pp=40–41}}.</ref>
* That every little bit of a country's soil be utilized for agriculture, mining or manufacturing.
* That all raw materials found in a country be used in domestic manufacture, since finished goods have a higher value than raw materials.
* That a large, working population be encouraged.
* That all exports of gold and silver be prohibited and all domestic money be kept in circulation.
* That all imports of foreign goods be discouraged as much as possible.
* That where certain imports are indispensable they be obtained at first hand, in exchange for other domestic goods instead of gold and silver.
* That as much as possible, imports be confined to raw materials that can be finished [in the home country].
* That opportunities be constantly sought for selling a country's surplus manufactures to foreigners, so far as necessary, for gold and silver.
* That no importation be allowed if such goods are sufficiently and suitably supplied at home.

Other than Von Hornick, there were no mercantilist writers presenting an overarching scheme for the ideal economy, as [[Adam Smith]] would later do for classical economics. Rather, each mercantilist writer tended to focus on a single area of the economy.<ref>{{Harvnb|Landreth|Colander|2002|p=44}}.</ref> Only later did non-mercantilist scholars integrate these "diverse" ideas into what they called mercantilism. Some scholars thus reject the idea of mercantilism completely, arguing that it gives "a false unity to disparate events". Smith saw the mercantile system as an enormous conspiracy by manufacturers and merchants against consumers, a view that has led some authors, especially Robert E. Ekelund and Robert D. Tollison, to call mercantilism "a [[rent-seeking]] society". To a certain extent, mercantilist doctrine itself made a general theory of economics impossible.<ref>{{Harvnb|Ekelund|Tollison|1981|p=154}}.</ref> Mercantilists viewed the economic system as a [[Zero sum|zero-sum game]], in which any gain by one party required a loss by another.<ref>{{Harvnb|Ekelund|Tollison|1981|p=9}}.</ref> Thus, any system of policies that benefited one group would by definition harm the other, and there was no possibility of economics being used to maximize the commonwealth, or common good.<ref>{{Harvnb|Landreth|Colander|2002|p=48}}.</ref> Mercantilists' writings were also generally created to rationalize particular practices rather than as investigations into the best policies.<ref>{{Harvnb|Landes|1997|p=31}}.</ref>

Mercantilist domestic policy was more fragmented than its trade policy. While Adam Smith portrayed mercantilism as supportive of strict controls over the economy, many mercantilists disagreed. The early modern era was one of [[letters patent]] and government-imposed [[monopolies]]; some mercantilists supported these, but others acknowledged the corruption and inefficiency of such systems. Many mercantilists also realized that the inevitable results of [[Import quota|quotas]] and price ceilings were [[Underground economy|black markets]]. One notion that mercantilists widely agreed upon was the need for [[economic oppression]] of the working population; laborers and farmers were to live at the "margins of [[subsistence]]". The goal was to maximize production, with no concern for [[consumption (economics)|consumption]]. Extra money, free time, and education for the [[lower classes]] were seen to inevitably lead to vice and laziness, and would result in harm to the economy.<ref>{{Harvnb|Ekelund|Hébert|1975|p=36}}.</ref>

The mercantilists saw a large population as a form of wealth that made possible the development of bigger [[Market (economics)|markets]] and [[army|armies]]. Opposite to mercantilism was the doctrine of [[physiocracy]], which predicted that mankind would outgrow its resources. The idea of mercantilism was to protect the markets as well as maintain agriculture and those who were dependent upon it.