Mercantilism is the economic theory holding that the prosperity of a nation depends upon its supply of capital and that the global volume of trade is unchangeable. The amount of capital, represented by bullion (amount of precious metal held by the state), is best increased through a favorable balance of trade with large exports and low imports. Mercantilism suggests that the government should advance these goals by playing an active, protectionist role in the economy by encouraging exports and discouraging imports, especially through the use of tariffs. Mercantilism was the dominant school of economics throughout the early modern period (from the 16th to the 18th century). Domestically, this led to some of the first instances of significant government intervention and control over the economy, and it was during this period that much of the modern capitalist system was established. Internationally, mercantilism encouraged the many European wars of the period and fueled European imperialism. Belief in mercantilism began to fade in the late 18th century, as the arguments of Adam Smith and the other classical economists won out.
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_______________________________ Today's selected anniversaries:
1740: Maria Theresa assumed the throne of Austria, following the Pragmatic Sanction of 1713. (http://en.wikipedia.org/wiki/Maria_Theresa_of_Austria)
1827: An allied British, French, and Russian naval force destroyed a combined Turkish and Egyptian fleet at the Battle of Navarino, a decisive moment in the Greek War of Independence. (http://en.wikipedia.org/wiki/Battle_of_Navarino)
1968: Former U.S. First Lady Jacqueline Kennedy married Greek shipping business magnate Aristotle Onassis. (http://en.wikipedia.org/wiki/Jacqueline_Kennedy_Onassis)
1973: Sydney Opera House in Sydney, Australia, was formally opened by Queen Elizabeth II. (http://en.wikipedia.org/wiki/Sydney_Opera_House)
1991: The Oakland Hills firestorm killed 25 people and destroyed 3,469 homes in Oakland, California, United States. (http://en.wikipedia.org/wiki/Oakland_Hills_firestorm)
_____________________ Wikiquote of the day:
"I think for it to be unhip to be idealistic is weird, you know? I mean, even all the best rebels to me had some sense of hope in them." -- Tom Petty (http://en.wikiquote.org/wiki/Tom_Petty)