What is mercantilism? Representatives of mercantilism. Mercantilism in the economy

Many people have heard the word "mercantile", but not everyone knows what it means and where it happened. But this word is closely connected with one of the most famous systems of doctrines, first appeared in the XV century. So what is mercantilism and what significance did it have in the history of mankind?

History of occurrence

What is "mercantilism" in the broadest sense of the word? The very term derives from the Latin word mercanti, which literally translates as "trading." Mercantilism, the definition of which differs slightly in different textbooks, is an economic theory that asserts the usefulness of the active balance of payments of the state for increasing the circulation of the mass of money and stimulating the economy. He also recognizes the need for protectionism as a means to achieve these goals. The notion of "mercantilism" began to be widely used by the authors of various treatises that scientifically substantiated the need for government intervention in any economic activity. This term was first proposed by the famous Scottish philosopher and economist Adam Smith. He actively criticized the works of his colleagues who called on the state to participate in economic activities with the help of protectionism, which was expressed in subsidizing the national producer and setting high import duties. A. Smith believed that mercantilists, who are practical economists, defend the trade and monopoly interests of the East India Company and some other British joint-stock companies. Many historians fundamentally disagree with this opinion of A. Smith. They argue that the development of English mercantilist laws was based on the views of a wide range of people, not just industrialists and traders.

Goals and ideology of mercantilism

In contrast to A. Smith, the apologists of this teaching argued that the goal of such a policy is not only to satisfy the aspirations of British industrialists and merchants, but also to reduce unemployment, increase allocations to the country's budget, fight speculators, and strengthen national security. To understand what mercantilism is, you need to carefully study its ideology. Its main principles are:

• High labor productivity can only be in those industries that produce goods for export;
• The essence of wealth can express only precious metals;
• Export should be encouraged by the state;
• The government must provide a monopoly to domestic industrialists and traders by preventing competition;
• Population growth is needed to maintain low wages and high profit margins.

The tasks of mercantilists

In the opinion of the proponents of this economic theory, she has the following tasks:

• To develop and apply in practice recommendations for the state, since it is simply impossible to create a favorable trade balance without government intervention;
• To implement a policy of protectionism, by imposing high customs taxes (duties) on goods imported from abroad; Promoting the development of those industries whose products are intended for foreign trade; Introduction of incentive awards for products exported abroad.

The role of mercantilism in the economy

The theory of mercantilism is one of the earliest economic doctrines, which is distinguished by its integrity. Its emergence and approval took place in the period of early capitalism. Mercantilists have always believed that the sphere of circulation always plays the main role in any economy, and consequently, in creating profit. In their opinion, the wealth of the nation is exclusively in the money. Critics of mercantilism believed that in the long term such a policy leads to self-destruction of the economy, since more money constantly leads to higher prices. Development is possible only until the active trading window at all disappears, and the result of any restrictions in the sale of products will be exclusively pure losses. In mercantilism, early and late stages are distinguished.

The development of this economic theory

Mercantilism in the economy, like any other theory, has been constantly evolving. In different epoch its principles were modified depending on the level of industrial production and commerce. The so-called "early mercantilism", which dates back to the 15th-16th centuries, had very strict (relevant to the epoch) basic provisions:

• For the export of precious metals (silver, gold) from the country relied on the death penalty;
• The import of goods was limited comprehensively;
• Very high prices were set on foreign goods;
• To limit the leakage from the country of the money supply, its export abroad was banned;
• The proceeds from the sale of funds foreigners had to spend on the purchase of local goods;
• The theory of monetary balance was considered the main one, since it was based on the whole policy of the state, aimed at increasing wealth by legislative means.

Early mercantilism Karl Marx described as a "monetary system". Representatives of mercantilism during this period: Englishman W. Stafford, Italians De Santis, G. Scaruffy.

Late mercantilism

From the second half of the XVI century. And until the end of the XVII century. This theory has slightly changed. Mercantilism in the economy in many respects proceeded from existing concepts before the industrial period. He assumed the limitation of individual needs of people and inelasticity of demand. The economy was conceived as a zero-sum game. In other words: the loss of one was equated to the winnings of the other participant. What is mercantilism in this era? Its main provisions are:

• The idea of active trade balance is dominant;
• Strict restrictions on export of money and import of the goods are removed;
• The economic policy of the state is characterized by the protectionism of the domestic producer;
• Develops the principle of acquiring cheap goods in one country and selling them for a higher price in another;
• Protection of the country's population from degradation caused by free trade.

The main representatives of mercantilism: Englishman T. Man (in some sources - Men), Italian A. Serra and Frenchman A. Montchretien.

Active Trade Balance Theory

According to late mercantilists, the active trade balance was ensured by exporting goods from the country. The main principle of trade: to buy cheaper and sell more. Money has two functions: means of circulation and accumulation, that is, late mercantilism began to interpret money as capital, recognizing that money is a commodity.

Basic principles:

• Management of foreign trade for the purpose of inflow of silver and gold;
• Support of industry by importing the cheapest raw materials;
• Establishment of protection tariffs for imported goods;
• Promotion of exports;
• Population growth in order to maintain a low level of wages.

Historians believe that the late mercantilism was very progressive for its time. He contributed to shipbuilding, industry, trade development, international division of labor.

The development of mercantilism

Mercantilism in the economy of the late XVII and early XIX century. Practically in all the most developed countries of Europe (England, Austria, Sweden, France, Prussia) is adopted for official economic doctrine. In England, it lasted almost 2 centuries (until the middle of the XIX century). Mercantilism, the definition of which in this period was equated with another concept of this economic theory - protectionism, became popular in Russia. For the first time, Peter I. began to use its principles. During the reign of Elizabeth Petrovna, mercantilism in Russia became more and more popular, and under Nicholas I the state most consistently began to use this economic theory. During this period, protectionist policies were aimed at improving the country's trade balance, which contributed to the development of industry and rapid population growth. During this period, the balance between imports and exports was established through price changes in the countries participating in the trade process.

Russian mercantilists

In Russia, AL Ordyn-Nashchekin (1605-1680) became a vivid exponent of the ideas of mercantilism. This statesman published in 1667 the "Novotorgovy Charter", which is permeated with the principles and ideas of this theory. AL Ordyn-Nashchekin spent his entire life trying to attract as much precious metals as possible to his country. He also became famous for his patronage of the merchant class and domestic trade.

A great contribution to economic theory was made by the Russian scientist and public figure VN Tatishchev (1680-1750), who opposed the export of silver and gold abroad in ingots. Import of precious metals, he proposed to be completely exempted from taxes (duties), as well as imports of raw materials necessary for the development of domestic industry. He proposed imposing high duties on products and goods that could be produced at Russian enterprises.

Prominent economist-mercantilist of his time believe and IT Pososhkova (1652-1726 gg.). In 1724, he wrote a "Book about poverty and wealth", in which he expressed many original ideas (for example, the division of wealth into the immaterial and material). Regardless of European economists, IT Pososhkov substantiated the economic program for the development of Russia, taking into account the specifics of domestic reality.

English commercialism

This economic policy was carried out practically in all European countries, but at the same time - depending on the historical situation in the state - it produced different results. The greatest successes of the theory of mercantilism reached in England. Thanks to its principles and guidelines, this state has become the largest colonial empire in the world. The concept of mercantilism in Britain fully reflected the interests of its largest trade monopolies.

Schools of mercantilism

Mercantilism in its essence is the first school of bourgeois political economy, which tried to theoretically substantiate the policy advocated by traders. It is characterized by active intervention of the state in all economic processes. The school of mercantilism taught that only thanks to the active protectionism of the state can the production of goods destined for export increase. At the same time, the government's policy should be aimed at supporting the expansion of commercial capital by encouraging the creation of monopoly companies engaged in selling their products. The state should use all means to develop navigation and navy, to seize more and more colonies. To achieve such goals it was necessary to increase the taxation of citizens.

The role of the sphere of circulation

Supporters of mercantilism paid maximum attention to the sphere of circulation. At the same time, they practically did not study the internal laws of the emerging capitalist production. All political economy was considered mercantilists as a science that studies the trade balance of the state. Early apologists of this theory identified wealth with precious metals (gold, silver), and later - with an excess of products remaining after satisfying the needs of the state, which can be sold on the foreign market and turned into money. In the conditions of a lack of money supply, the early mercantilists reduced its functions to a means of accumulation. Over time, money became a means of circulation. Later mercantilists began to interpret money as capital.

Money - goods

Late mercantilists considered money a commodity, but before K. Marx could not find out why and how the commodity turns into money. Contradicting its main thesis "money is wealth", mercantilists became the founders of the so-called "nominalistic" and later "quantitative" theory of money. Only labor was declared productive, the products of which, when exported, brought much more money to the state than their cost price. In the process of rapid development of capitalism, the provisions of mercantilism could no longer correspond to the newest economic conditions. He was replaced by a bourgeois political economy, which theoretically justified free economic activity. Mercantilism outlived itself at a time when in developed countries commercial capital gave way to industrial. In the transition to industrial production, classical political economy emerged and blossomed .