Mercantile System (Noun)
Meaning
An economic system (Europe in 18th century) to increase a nation's wealth by government regulation of all of the nation's commercial interests.
Classification
Nouns denoting groupings of people or objects.
Examples
- The early modern state in Europe used the mercantile system to channel its efforts towards economic prosperity during the 18th century.
- Between the 17th and 18th centuries, the mercantile system became more prevalent as European powers saw the potential for greater gains through state-level economic intervention.
- Critics of the mercantile system argued that it relied on state-controlled monopolies that stifled innovation, discouraging the sort of entrepreneurial spirit seen in nations opting out of such an economic model.
- Many historians contend that the shift to free market economics away from the mercantile system was primarily brought about through the ideology described in Adam Smith's Wealth of Nations.
- Because of powerful trade policies, colonial powers used the mercantile system to accumulate wealth, influence, and power while maintaining stability in their global networks of influence.