Mercantilism

[Helena]

What does our country absolutely need from other countries and what do we have to offer for trade? Should our country move toward a common goal of mercantilism? Why or why not?

[carolina73]

Mixed feeling on this.

We should have free and open trade with countries that share our economic, environmental standards. If France, UK, Spain... have efficiencies or patents protecting their manufacturers then Americans should not be afraid to share in their efficiencies.

We should equalize and costs related to violations in countries that do not share our principles. We should not both promote slave labor and lower pollution standards. Those must be rectified through tariffs.that normalize their cost advantage.

Tariffs should also be used to rectify currency manipulations.

Our jobs were lost mostly Asia because of low labor costs and because there were no standards on pollution.
The result was high unemployment and low wages that created negative income flow to government.
McDonalds hired High School kids 40 years ago not grown ups. The grown ups had grown up jobs making things.

[Chris]

Well, Trump is more of a mercantilist than he is a free-market capitalist. Mercantilism is pre-modern and might well be better than the mess pure individualistic capitalism leads to.

[Peter1469]

Let's make sure people are using the term mercantilism the same:

Mercantilism, economic theory and practice common in Europe from the 16th to the 18th century that promoted governmental regulation of a nation’s economy for the purpose of augmenting state power at the expense of rival national powers. It was the economic counterpart of political absolutism. Its 17th-century publicists—most notably Thomas Mun in England, Jean-Baptiste Colbert in France, and Antonio Serra in Italy—never, however, used the term themselves; it was given currency by the Scottish economist Adam Smith in his Wealth of Nations (1776).

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Jean-Baptiste Colbert (detail of a bust by Antoine Coysevox)Jean-Baptiste Colbert, detail of a bust by Antoine Coysevox, 1677; in the Louvre, Paris.
Giraudon/Art Resource, New York


Adam SmithAdam Smith, paste medallion by James Tassie, 1787; in the Scottish National Portrait Gallery, Edinburgh.
Courtesy of the Scottish National Portrait Gallery, Edinburgh

[Helena]

Let's make sure people are using the term mercantilism the same:

I was going toward more of a soft mercantilism, I believe. It does make sense to expect a country of a certain magnitude to produce and export more than it takes in, doesn't it?

[Peter1469]

I was going toward more of a soft mercantilism, I believe. It does make sense to expect a country of a certain magnitude to produce and export more than it takes in, doesn't it?

I think that depends. It certainly could be good for a nation.

My grip with the US is not producing strategic resources at home. Like rare earth minerals.

[Helena]

I think that depends. It certainly could be good for a nation.

My grip with the US is not producing strategic resources at home. Like rare earth minerals.

Is it not within the realm of consideration that the US thinks too highly of itself, and in considering the problem of resources may have leaned in the direction of depleting land elsewhere before we carve out some of what we need here?

[Peter1469]

Is it not within the realm of consideration that the US thinks too highly of itself, and in considering the problem of resources may have leaned in the direction of depleting land elsewhere before we carve out some of what we need here?

Perhaps.

But imo it is not wise to rely on an enemy (China) for critical material (rare earth minerals) for the US defense industry.

Environmentalists made it too hard for the US to mine its own REM - Trump fixed that.

[Dr. Who]

Mercantilism was directly linked to colonialism. The basic injunction against importing goods/materials from foreign countries alone encouraged imperialism for obvious reasons.

[Helena]

Mercantilism was directly linked to colonialism. The basic injunction against importing goods/materials from foreign countries alone encouraged imperialism for obvious reasons.

True, but as an idea not linked to a power grab, but simply strengthening a country's core, do you subscribe to the general air of logic behind it?