Conociendo al capital: 02. Mercantilismo. Canal Encuentro

Summary

This video explores the evolution of mercantilist thought and its influence on national economies. It begins with a comparison between Argentine and Chinese bicycle industries, highlighting the impact of import tariffs. The script delves into the rise of mercantilism, its focus on increasing national wealth through controlled trade, and the creation of modern states with centralized power. As mercantilists advocated for protecting local industries and regulating imports, the video illustrates how such policies could affect global trade and national economies, emphasizing the balance between exports and imports for a prosperous nation.

Takeaways

• 😀 Mercantilism is not an economic school of thought but a set of disjointed economic proposals evolving over three centuries.
• 😀 In the Renaissance, the focus shifted towards individualism, economic gain, and the accumulation of wealth, undermining feudal systems.
• 😀 Mercantilist thought emerged in response to political, economic, and religious changes, with merchants and capitalists seeking to increase national wealth.
• 😀 During the Renaissance, agricultural advances led to surplus production, creating a market for trade, and enriching feudal lords who sought luxury goods from the East.
• 😀 Merchants, traveling across Europe, profited by buying goods cheaply and selling them at a much higher price, contributing to the rise of the bourgeoisie.
• 😀 The mercantilist theory emphasized the importance of controlling trade routes, maintaining a favorable balance of trade, and accumulating wealth through exports.
• 😀 Spain’s early mercantilist focus was on extracting precious metals from its colonies, while France and England concentrated on overseas trade and piracy.
• 😀 In France, by the 17th century, there was a push for local production of luxury goods, which could be sold for higher profits than raw materials.
• 😀 Mercantilism promoted protectionism, advocating for the regulation of imports and supporting the development of local industries to ensure wealth accumulation.
• 😀 The mercantilist era saw a shift in power from feudal lords to centralized monarchies, which encouraged the unification of markets and the strengthening of national economies.

Q & A

What is mercantilism and how did it evolve over time?

Mercantilism is not a formal school of economic thought but a set of ideas that evolved over three centuries. It focused on accumulating wealth, often in the form of precious metals, and bolstering the power of the state. Initially, it arose in Europe during the Renaissance and developed through various historical periods as a response to political, social, and economic changes.

What role did merchants play in the development of mercantilism?

Merchants, particularly in the growing capitalist class, played a central role in the development of mercantilism. They became increasingly powerful, advocating for policies that would support trade and commerce. Through their actions, they contributed to the idea that national wealth could be increased through trade, often by exporting more than importing.

How does the example of bicycles illustrate mercantilism in action?

The example of bicycles highlights mercantilism through the concept of protectionism. By imposing tariffs on imported bicycles (e.g., Chinese-made bicycles), the government can make them more expensive, encouraging consumers to buy locally-produced bicycles. This helps protect the national industry from foreign competition, which is a core idea in mercantilist thinking.

Why are Chinese bicycles cheaper than Argentine bicycles?

Chinese bicycles are cheaper than Argentine bicycles due to several factors. First, China produces bicycles in much larger quantities, which allows for economies of scale and lower production costs. Additionally, Chinese wages are generally lower than those in Argentina, reducing the overall cost of manufacturing.

What is the purpose of imposing an import tariff on bicycles in Argentina?

The purpose of imposing an import tariff on bicycles in Argentina is to protect local industries from cheaper foreign products. By raising the price of imported bicycles, the government makes locally-produced bicycles more competitive, thus supporting domestic manufacturing and preventing job losses in the national bicycle industry.

What is the concept of the 'balance of trade' in mercantilism?

The balance of trade refers to the difference between the value of a country's exports and its imports. Mercantilists believed that a positive balance of trade (where exports exceed imports) was crucial for national wealth because it meant that more gold and silver were coming into the country than were leaving.

How did mercantilist thinkers view the role of the state in the economy?

Mercantilist thinkers believed that the state should have a strong role in managing the economy. They advocated for policies such as protectionism, tariffs, and regulation of trade to ensure that the nation accumulated wealth. The idea was that state intervention could secure national prosperity by controlling markets and promoting exports.

How does the mercantilist view on precious metals relate to modern economic policies?

The mercantilist view of accumulating precious metals, like gold and silver, to increase national wealth is similar to modern economic policies where countries seek to accumulate foreign reserves in their central banks. Both perspectives focus on increasing national wealth through the control of valuable resources, though today the focus is on currency reserves rather than just precious metals.

What is 'proteccionismo' or protectionism, and how does it function?

Protectionism is the economic policy of protecting domestic industries from foreign competition. It involves strategies like imposing tariffs on imports or subsidizing local industries to encourage the consumption of locally-produced goods. The goal is to reduce imports, increase local production, and improve the balance of trade.

How does the rise of capitalist merchants influence political structures, according to the transcript?

According to the transcript, capitalist merchants gained power through their growing wealth and influence, leading them to advocate for the unification of markets and the centralization of political power. This ultimately contributed to the rise of modern nation-states, where monarchs strengthened their power by supporting capitalist interests and ensuring market access.