Mercantilism -- Definition for Kids

History Illustrated

15 Aug 202205:17

Summary

TLDRThis video explores mercantilism, an economic system driven by European powers like Spain, France, and England during the Renaissance. As these nations colonized new lands, they collected resources to enhance their wealth and power. Colonies could only trade with their mother countries, fueling intense competition. The impact of mercantilism was vast, leading to European dominance, the spread of Christianity, industrialization, and colonization. It reshaped global politics, economies, and cultures while triggering slavery and the destruction of native societies. Though powerful for centuries, European empires collapsed after World War II, losing their colonies.

Takeaways

💰 Mercantilism is an economic system focused on the economy, wealth, and trade.
🌍 European powers, including Spain, France, England, Portugal, and the Dutch, were the primary players in mercantilism.
🚢 European exploration and colonization began in the 1400s, with nations racing to claim new lands and resources.
🛠 Colonies provided raw materials that were sent back to Europe to be manufactured into goods, boosting wealth in the mother countries.
📜 European colonies were restricted to trading only with their mother countries, creating a system where wealth was concentrated in Europe.
🏰 Mercantilism led to the rise of European powers, establishing massive empires and dominance in the global economy.
⛪ The spread of Christianity, as well as the social and cultural changes caused by European colonization, had long-lasting global impacts.
🔗 Millions of people were enslaved, and entire civilizations were disrupted or destroyed due to colonization and mercantilism.
⚖️ The world’s legal and political systems were reshaped by European values, spreading ideas from ancient Greece and Rome.
🌱 Environmental and agricultural exchanges transformed global food systems and population growth, with Europe influencing cultures worldwide.

Q & A

What is mercantilism?
-Mercantilism is an economic system where countries aim to accumulate wealth, primarily through trade and the acquisition of colonies, to strengthen their economy and power.
Which European powers were primarily involved in mercantilism?
-The primary European powers involved in mercantilism were Spain, France, and England, though other countries like Portugal and the Dutch also played significant roles.
How did European countries benefit from colonizing new lands?
-European countries benefited by claiming new lands, extracting resources such as gold and exotic goods, and creating new markets to sell goods. This wealth helped them gain power and influence.
Why was competition between European countries so fierce during the mercantilist period?
-The competition was fierce because countries wanted to accumulate more wealth and power, and the more land and resources a country claimed, the stronger it became relative to others. This created intense rivalries.
How did colonies function under mercantilism?
-Colonies served as both new markets for European goods and sources of raw materials. These materials were sent to the mother country, where they were turned into manufactured goods.
What were the trading restrictions imposed on colonies under mercantilism?
-Colonies were only allowed to trade with their mother country, even if other countries offered better prices for their goods. This ensured that wealth was concentrated with the mother country.
What was the economic impact of mercantilism on Europe?
-Mercantilism helped European countries grow powerful, establishing colonies around the world, and led to industrialization, which had a long-lasting impact on global economies.
What were some of the social and cultural effects of mercantilism?
-Mercantilism spread Christianity worldwide, contributed to the enslavement and forced migration of millions of people, and led to the destruction or assimilation of many indigenous cultures.
How did mercantilism affect political systems around the world?
-Mercantilism spread European legal systems and political values, many of which were based on ancient Greek and Roman traditions, and influenced the development of modern political systems globally.
What were the environmental consequences of mercantilism?
-Mercantilism facilitated the global exchange of plants, animals, and resources, leading to changes in agriculture and population growth. It also introduced European views on land ownership, which displaced native practices and reshaped landscapes.

Outlines

00:00

💰 The Rise of Mercantilism and European Expansion

The video begins by introducing mercantilism, a European-led economic system aimed at accumulating wealth and power. This system was predominantly spearheaded by Spain, France, and England, although other nations like Portugal and the Dutch were also key players. The exploration era began in the 1400s with European powers claiming new lands, such as Columbus' 1492 discovery of the Americas. This fueled intense competition among European nations to extract wealth through resources like gold and trade. Mercantilism strengthened these nations, giving them the power to avoid being marginalized or bullied.

05:00

🌍 Mercantilism's Mechanism: Colonies and Trade Rules

Mercantilism operated through colonies that European powers established in newly claimed lands. Colonies served as new markets and sources of raw materials, which were exported back to Europe to be turned into manufactured goods. A key rule under mercantilism was that colonies could only trade with their 'mother country,' ensuring wealth flowed back to Europe. This system helped European nations grow powerful, but also intensified rivalries and had significant impacts, including driving industrialization and shaping global trade practices.

🌐 Global Impacts of Mercantilism: Power and Industrialization

The effects of mercantilism extended beyond economic gains. Europe became the dominant global power, colonizing every continent except Antarctica. The system fueled industrialization, which had a profound impact on people’s lives, reshaping economies and societies worldwide. Socially and culturally, mercantilism spread Christianity and contributed to the enslavement of millions. Many civilizations were conquered or wiped out, leaving lasting legacies, such as the spread of European legal systems and values, which were often adopted or imposed on other countries.

🌱 Environmental and Population Changes Due to Mercantilism

Mercantilism also had vast environmental impacts, triggering an unprecedented exchange of plants, animals, and resources across continents. This reshaped ecosystems and agricultural practices, with notable examples like tomatoes becoming a staple in Italian cuisine. The system also disregarded indigenous views on land, promoting private ownership, which helped drive agricultural development and a global population boom from under a billion to over seven billion in just a few centuries. The environmental and societal shifts sparked by mercantilism continue to affect the world today.

🏴 The Decline of European Colonial Powers

Mercantilism's reign began to fade after World War II when European powers, weakened by destruction, could no longer control their colonies. Over time, these colonies declared independence, marking the collapse of European imperialism. What took centuries to build unraveled in just a few decades, leaving once-powerful European nations powerless to maintain their grip on the colonies they had dominated for over 500 years.

Mindmap

Keywords

💡Mercantilism

Mercantilism is an economic system where nations seek to accumulate wealth and power by controlling trade and establishing colonies. It is central to the video as it explains how European powers used colonies to increase their wealth by collecting raw materials and selling manufactured goods. This system led to intense competition among European countries like Spain, France, and England.

💡European Powers

European powers such as Spain, France, England, Portugal, and the Dutch are highlighted as the main countries involved in mercantilism. These nations explored and colonized new lands during the Renaissance period, which fueled their wealth and global influence. The video emphasizes their role in expanding European dominance through mercantilist policies.

💡Colonies

Colonies are territories claimed and controlled by European powers to exploit resources and create new markets. In the video, colonies are shown as essential to mercantilism, providing raw materials like lumber that were shipped back to Europe to be manufactured into goods. This system ensured wealth remained concentrated in the mother countries.

💡Raw Materials

Raw materials refer to natural resources like timber or minerals extracted from colonies. The video explains how these materials were sent back to Europe, where they were transformed into manufactured goods. This process was a key part of the mercantilist system, with colonies restricted to trading only with their mother countries.

💡Manufactured Goods

Manufactured goods are products made from raw materials, such as furniture from lumber. In mercantilism, European powers turned raw materials from colonies into valuable goods, which they could sell for profit. This production and sale of goods helped European nations grow wealthy and powerful, as described in the video.

💡Mother Country

The mother country refers to the European nation that established and controlled colonies. In the video, it is emphasized that colonies were only allowed to trade with their mother country, concentrating wealth and power there. For example, English colonies could only sell their goods to England, even if another country offered a higher price.

💡Rivalry

Rivalry describes the intense competition between European powers to claim new lands and resources. The video portrays this rivalry as a key driver of mercantilism, with nations like Spain, France, and England competing to build the largest empires and amass the most wealth. This competition led to conflicts and shaped global power dynamics.

💡Christianity

Christianity is mentioned in the video as a major cultural impact of European colonization. Through mercantilism and empire-building, Christianity spread to many parts of the world, becoming the largest religion. This cultural exchange was a significant consequence of the mercantilist system, affecting social structures across continents.

💡Industrialization

Industrialization refers to the transition to mass production and the use of machinery, which began in Europe during the mercantilist period. The video mentions industrialization as an outcome of the wealth and power gained through mercantilism, which transformed economies and societies. It had lasting effects on the global economy and everyday life.

💡Colonial Independence

Colonial independence refers to the period after World War II when European colonies declared their independence. The video highlights how the European powers, weakened by the war, could no longer control their colonies, leading to the collapse of their empires. This marks the end of the mercantilist era, as many colonies gained freedom after centuries of European dominance.

Highlights

Mercantilism is an economic system focusing on wealth and power accumulation by European countries.

Mercantilism was primarily led by Spain, France, and England, with Portugal and the Dutch also playing significant roles.

European countries competed to discover and claim new lands after Columbus' voyage in 1492.

Colonies provided new markets and resources, which were sent back to Europe and manufactured into goods.

European colonies were restricted from trading with countries other than their mother country, concentrating wealth in Europe.

The mercantilist system helped European powers grow dominant, leading to the creation of the world's largest empires.

The system contributed to the spread of Christianity, which remains the world's largest religion today.

Mercantilism resulted in the forced migration and enslavement of millions of people, leaving a lasting legacy.

Some civilizations were wiped out through conquest, disease, or war due to European expansion.

European legal and political systems, derived from Greece and Rome, were imposed on much of the world.

Environmental changes occurred through the exchange of plants, animals, and resources across continents.

Mercantilism paved the way for agricultural advancements that contributed to the global population surge from under 1 billion to over 7 billion.

The collapse of European empires after World War II led to the independence of their colonies.

Despite its collapse, mercantilism continues to leave a significant mark on the modern world.

The mercantilist era, which began in the 1400s, lasted for about 500 years until the mid-20th century.