What Does It Mean To Say That Mercantilism Is Better Than Capitalism

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Religious conflict while determining the value of money and wealth, sparked the debate over which economic system was better, mercantilism or capitalism. The church was heavily opposed to people’s strong interest in making money. Catholic priests and nuns had encouraged people to live an undemanding life, one without the greed of power and wealth. (Armstrong) For this philosophy stemmed an economic system that was very attractive from the 16th to 18th century, mercantilism. The system had shifted the attention from individual prosperity to the success of the whole country. This economy that a country’s growth was guaranteed under a structure of few exports and a mass of imports. (“Economist”) In order for this system to succeed it relied on …show more content…
Also, the individuals forced to work under the restrictions found it impossible to gain power through wealth, as the government controlled the economy. (Rothbard) Much of this was significant because it showed the church's beliefs on how the economy should work, but it also allowed for an argument to be made against them. How can people make their own money when they are always operating under government regulations? In the “Wealth of Nations,” Adam Smith addresses this question in saying, “In the mercantile regulations, which have been taken notice of in this chapter, the interest of our manufacturers has been most peculiarly attended to; and the interest, not so much of the consumers, as that of some other sets of producers, has been sacrificed to it. “(Smith IV .8.54) Adam Smith highlights the problem that the producer was paying more attention to the competition rather than the consumer of the product. Attention shift happened as a result of the producers inability to gain money while specifically paying attention to the needs of the consumer. This issue was significant in forming an improved economic system,
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