DTF.com.au

Which of the following policies accurately describes the economic policy of mercantilism?

a)It downplayed the role of the governmen in stimulating economic growth. b)It discouraged the establishment of overseas colonies. c)It encouraged trade by abolishing laws that regulated trade. d)It was based on the belief that a nation's real wealth was measured in its gold and silver treasure.

Public Comments

1. Just off the top of my head, I'd say (a) and (c) are most likely correct. The other two answers are likely to be incorrect because the *concept* of Mercantilism came about during the latter days of European Colonial Empires, particularly the last days of remote *English* empires in India and Africa. So...basically, mercantilism didn't so much discourage colonies as it encouraged finding parts of the world that *could be used* with minimal colonization. You really didn't see too many "settlers" colonize areas in the last, mercantile days of the European colonial empires. And, at least with Mercantile England (before it became the U.K. proper), the wealth was measured in *both* gold/silver treasuries *and in* imperial reach. The old saying, "The sun never *sets* on the British Empire" reflected this view, that it wasn't just about money, but also about reach and presence. In fact....this is likely one of the major reasons why mercantilism *failed* for Europe. Eventually, revolts and outright warfare made it *too expensive* to maintain that "reach and presence" in any but the weakest, most informal manners. But hey, it's been a while since I've read my history in college, I could be wrong here, and don't mind being corrected. Thanks for your time! ^_^
2. a. and c. are clearly not true. Using Britain as an example, mercantilism taught that the colonies were not to be permitted to manufacture and sell goods freely in an open market. They were to furnish raw material for British manufacture and purchase finished goods from Britain ....."not so much as a horseshoe nail was to be of colonial manufacture" b. is also incorrect, because the essence of mercantilism was exploitation of overseas colonies. So the answer is d. This is also evidenced by Britain's extreme shortsightedness in the case, for example of the American colonies, in imposing taxes and duties which it would cost far more to collect than it was worth-----also in that continued close association with those colonies would have brought more benefit than the financial profits to be made------a classic case of obstinate folly--------which eventually lost them those colonies and subsequently the entire empire. What dolts!