Mercantilism: The Rise and Fall of a Nationalistic Economic Policy
2025-04-05
From the 16th to the 19th centuries, mercantilism dominated European economic thought. This nationalist policy prioritized maximizing exports and minimizing imports to accumulate national wealth and power. High tariffs, trade monopolies, and colonial expansion were hallmarks of this system. Mercantilism fueled competition and warfare between nations, and also propelled imperial expansion. However, its zero-sum game nature and restrictions on free trade ultimately led to its decline. Adam Smith's *The Wealth of Nations* delivered a powerful critique, paving the way for free trade. Though largely obsolete, echoes of mercantilist strategies, such as protectionism, persist in modern economic policy.
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