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Mercantilism The Economics of Absolutism

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ECONOMICS PRODUCTIONDISTRIBUTIONCONSUMPTION of goods and services The study of the

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1. What 1. What should we produce? 2. How much 2. How much should we produce? 3. How 3. How should we produce it? 4. Who 4. Who should consume it? ? The Four Economic Questions

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COMMAND COMMAND Economy ? MARKET MARKET Economy Mercantilism Liberalism

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Jean-Baptiste Colbert Louis XIVs Finance Minister Associated with Mercantilism Bourgeoisie Wealthy Merchants Son

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What is Mercantilism? national state rivalry A system of political and economic policy, evolving with the modern national state and seeking to secure a nations political and economic supremacy in its rivalry with other states. preciousmetals exporting favorablebalanceoftrade According to this system, money was regarded as the store of wealth, and the goal of a state was the accumulation of precious metals by exporting the largest possible quantity of its products and importing as little as possible, thus establishing a favorable balance of trade.

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The Economic Assumptions of Mercantilism

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National Wealth is measured in PRECIOUS METALS Some rights reserved by sprottmoneySome rights reservedsprottmoney

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This wealth is FINITE Some rights reserved by sprottmoneySome rights reservedsprottmoney

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Zero-Sum Game Some rights reserved by randomduckSome rights reservedrandomduck

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In order for me to get a bigger piece, you have to get a smaller piece. Some rights reservedSome rights reserved by casey.marshallcasey.marshall

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ECONOMIC RIVALRY Some rights reservedSome rights reserved by Official U.S. Navy ImageryOfficial U.S. Navy Imagery

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ECONOMICS: A TEAM SPORT Some rights reservedSome rights reserved by Official U.S. Navy ImageryOfficial U.S. Navy Imagery

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Favorable Balance of Trade EXPORTS > IMPORTS

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Self-Sufficiency

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Some rights reservedSome rights reserved by Lexie

Mercantilism Hand Turkey Exports > Imports BullionSelf-SufficiencyRegulationSubsidiesMonopoliesTariffsColonialismCorruption How to Draw a Hand Turkey AKA Merc Turk Art Credit: brandon schauerbrandon schauer

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