Mercantilism, was an economic system tied in with the feudal system.
-There were heavy restraints placed on individuals-Practiced protectionism; support of craft guilds
-Heavily licensed and many large government monopolies
-Import & export regulations; severe restrictions of the free movement of people.
-Limits on domestic production; price controls were controlled by centralized third parties; wages were controlled "maximum wage".
-Blended with the feudal system because that's just how the world seemed to work.
"You didn't expect the government to do things for you, you expected them to do things to you."
Know differences between what Physiocrats, Mercantilists, and Scottish Moral Philosophers thought about the SOURCES OF WEALTH.
David Hume
Argued that the laws of economics can stand on their own through time, through peoples changes, internally and externally.
Identified "commerce" as the engine that drives improved living standards.
Argument against Mercantilists
"Price-Specie Flow Mechanism"means prices rise in your country you go somewhere else for the good (Law of One Price).
Money doesn't matter! Money is neutral! What matters is purchasing power!
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