What do you think of the mercantilists' view of economics?

[Melisa Jane]

This is a discussion topic for the April 2024 Book of the Month, "Launchpad Republic: America's Entrepreneurial Edge and Why It Matters" by Howard Wolk and John Landry

What do you think of the mercantilists' view of economics?

[Jones Mwaniki]

It's a win and lose situation. I mean, its focus is mostly profit oriented and aiding to generate a country's wealth, which is great. But that also involves restricting imports from other countries. It also has government in control, which can impede entrepreneurship.

[Muhammad Haikal Birton]

Mercantilism is an economic theory that says we should be self-sufficient by having more stuff going out than coming in. It's based on the idea that a country's wealth is finite, so we should accumulate it by exporting more and importing less.

[Miracle Kingss]

Mercantilsm theory can't be practiced in all countries. For example we have some countries that have less than 1% arable land, how would they practice this economic theory?

[Daniel Obi 2]

The mercantilists' focus on wealth accumulation feels short-sighted. Sustainable growth and innovation seem more crucial in today's globalized economy

[Wilfred Patrick]

According to the economic philosophy of mercantilism, we should be self-sufficient by exporting more goods than we import. It is predicated on the notion that a nation's wealth is limited and should be accrued through increased exports and decreased imports.

[Shanesha Sammerson]

The mercantilist view of economics, which emphasizes the accumulation of wealth through exporting more than importing, has both strengths and weaknesses.

One strength of mercantilism is its focus on promoting domestic industries and increasing exports, which can stimulate economic growth and create jobs. By prioritizing domestic production and trade surpluses, mercantilist policies aim to strengthen a country's economic base and reduce reliance on foreign imports.

However, mercantilism also has several drawbacks. One major criticism is its zero-sum mentality, which views international trade as a competition where one country's gain is another country's loss. This can lead to protectionist policies such as tariffs and trade barriers, which can stifle competition, limit consumer choice, and ultimately harm economic efficiency.

Additionally, the focus on accumulating wealth through trade surpluses overlooks the benefits of international trade and specialization. Trade allows countries to exchange goods and services based on comparative advantages, leading to greater efficiency, higher productivity, and increased overall welfare for all trading partners.

Furthermore, the notion that a country's wealth is finite and must be hoarded through trade surpluses is outdated and contradicted by modern economic theory. Wealth is not fixed; it can be created through innovation, investment, and productivity gains. Embracing openness to trade and investment can facilitate economic growth and prosperity by allowing countries to capitalize on their comparative advantages and participate in the global economy.

In summary, while mercantilism emphasizes the importance of promoting domestic industries and trade surpluses, its zero-sum approach to international trade and focus on hoarding wealth through protectionism are widely viewed as outdated and counterproductive in today's interconnected global economy.