According to the dominant historical narrative, mercantilism was the economic theory prevalent in early modern Europe, until it was replaced when Adam Smith and other Enlightenment thinkers founded the current economic paradigm. Many historians challenge this view, and with good reason. In this piece, I will explain why the dominant view is wrong, and propose an alternate explanation: mercantilist policies were not the result of an economic theory at all, but were the result of state actors seeking to centralize power. Recasting these policies as coming from an economic theory was a rhetorical move that Smith and other early economists used to establish their own legitimacy.
Mercantilism Was Not About Economics
Mercantilism Was Not About Economics
Mercantilism Was Not About Economics
According to the dominant historical narrative, mercantilism was the economic theory prevalent in early modern Europe, until it was replaced when Adam Smith and other Enlightenment thinkers founded the current economic paradigm. Many historians challenge this view, and with good reason. In this piece, I will explain why the dominant view is wrong, and propose an alternate explanation: mercantilist policies were not the result of an economic theory at all, but were the result of state actors seeking to centralize power. Recasting these policies as coming from an economic theory was a rhetorical move that Smith and other early economists used to establish their own legitimacy.