Mercantilism

Adam Smith not only coined the re-adapted term “invisible hand,” but also the “mercantile system,” which we just call mercantilism today (bc ev’thg is shrthnd nwdyz).

Mercantilism is a nationalist economic policy that says “Exports, yay! Imports, nay…well, maybe just a few...” The idea of mercantilism is to rake in the foreign dough while still maintaining local employment. Mercantilism reigned supreme for many countries from the 1500s to the 1700s. This contrasts with today’s laissez-faire-esque nationalist economic policy, which acknowledges that trade benefits both buyers and sellers, since we’re all specialized now.

Mercantilism meant that federal governments granted favorable conditions and rules to merchants, who sold things overseas. Lots of big changes happened at the height of mercantilism, such as the increase in metallic currencies (over bartering), the precursor to the Industrial Revolution with international commerce and trade growing, and transitioning from feudalism to capitalism.