Mercantilist's Theory Of Capitalism And Wealth

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Mercantilists believed money was equal to power, and that wealth was strongly correlated to political or state power. But over all, their entire goal was to advance the country’s interest through regulation. They defined wealth through the country’s supply of precious metals (e.g. gold and silver). All goods needed to be produced in the country itself to be able to decrease imports and increase exports, so that there would be a surplus on the balance of trade. A positive balance of trade was a key player as it insinuates advancements in wealth. B) The Physiocrats concept of wealth was that of commodities. They were the first to state the idea of an economy as a natural integrated system of production, distribution and consumption. As land, labour and capital were fully being put to use, manufacturing increased, which therefore increased agriculture. Physiocrats evaluated that agriculture alone would generate a net profit and subsequently this alone was a source of wealth. And an increase in agriculture seemed to be what they thought would be essential as an engine of growth. C) Smith and fellow classical economists stipulated wealth as an accumulated fund of resources. Wealth depended on proportion, and proportion depended on two different concepts. The first being where there is a division of labour, there is an increase in productivity. Smith claims that skill, dexterity, and judgement were regulators of determining the factors of wealth of a nation. (Adam Smith [Edited

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