Comparison and Contrast of Mercantilism and Capitalism

Last Updated: 21 Mar 2023
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Compare Contrast In 1450-1750, mercantilism and capitalism were two dominant forms of economy. Both economies were similar in the way that they both originated in Europe and promoted trade between countries and were different in the way that capitalism revolved around wealth creation while mercantilism revolves around wealth accumulation and gold bullions. The dominance of capitalism and mercantilism as economic systems in Europe promoted contrast between the two different styles. Capitalism focuses on wealth creation through the individual, while mercantilism is centered on wealth accumulation by extraction.

In a capitalist economy, privately owned business are encouraged while in a mercantilist economy government owned businesses are supported because of the heavy economic regulations in mercantilism. Capitalism encourages consumer spending while mercantilism discourages the extravagance of the consumers because capitalist wealth creation revolves around the individual. Capitalism supports a competitive business environment that contrasts mercantilisms monopolies because capitalism encourages privately owned small businesses while mercantilist economies support fewer businesses that dominate their respective industries.

Mercantilist wealth is measured in gold bullions while capitalist wealth is measured in economic growth. Mercantilism was created prior to capitalism and was not dominant in the 17th and 18th centuries, while capitalism emerged in the 19th century to support mercantilist ideas. Capitalism and mercantilism are two similar forms of free market economy. Both forms of economy originated in Western Europe. Capitalism was created after mercantilism in order to support mercantilist ideas.

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Capitalism and mercantilism both encourage trade among countries and colonies because capitalist ideas, like oversea trade, were made to support mercantilism. Both economic systems oppose the ideas of socialism and communism with free market principles. In 1450-1750, mercantilism and capitalism were two dominant forms of economy. Both economies were similar in the way that they both originated in Europe and promoted trade between countries and were different in the way that capitalism revolved around wealth creation while mercantilism revolves around wealth accumulation and gold bullions.

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What is mercantilism?
Mercantilism is an economic system that was popular in the 16th to 18th centuries. It is based on the idea that a country should export more than it imports in order to accumulate wealth and increase its power. Mercantilism also involves the government controlling trade and industry to ensure that the country benefits from its exports.
Is mercantilism better than capitalism?
No, mercantilism is not better than capitalism. Capitalism is an economic system that encourages competition and innovation, while mercantilism is an outdated economic system that focuses on accumulating wealth through trade and government regulation. Capitalism has proven to be more successful in creating economic growth and prosperity than mercantilism.
What is the major difference between mercantile capitalism and industrial capitalism?
The major difference between mercantile capitalism and industrial capitalism is that mercantile capitalism is based on the accumulation of wealth through trade and commerce, while industrial capitalism is based on the production of goods and services through the use of machines and technology. Mercantile capitalism is more focused on the buying and selling of goods, while industrial capitalism is more focused on the production of goods.
What are the similarities between mercantilism and Marxism?
Both mercantilism and Marxism are economic theories that focus on the relationship between the government and the economy. Both theories emphasize the importance of government intervention in the economy, and both advocate for the redistribution of wealth and resources. Additionally, both theories are based on the idea that the government should be the primary regulator of the economy.

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Comparison and Contrast of Mercantilism and Capitalism. (2017, Feb 10). Retrieved from https://phdessay.com/comparison-and-contrast-of-mercantilism-and-capitalism/

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