WordGarden.iomercantilist
C2Pronunciation
UK
US
- /mərˈkæntəlɪst/
Meanings
Adjective
relating to or favoring mercantilism as a trade-centered economic policy
Noun
an advocate or adherent of mercantilism
Beyond the definition
Imagine a time when countries believed the key to power was not just land or armies, but wealth. A mercantilist was a person who supported policies meant to help a nation sell more goods abroad than it bought from other countries, often so that gold and silver would flow in. Think of it like trying to keep the national piggy bank full. People with this view believed it would make their country stronger and more independent. This idea strongly shaped European economies from the 16th to the 18th centuries, leading to tight trade rules and the use of colonies as sources of raw materials and as buyers of finished goods. If you read about colonial America, you quickly see these policies at work: Britain wanted resources from its colonies and expected colonists to buy manufactured goods mainly from Britain.
The term "mercantilist" can describe a person, policy, or idea connected to mercantilism, a major economic way of thinking in Europe from roughly the 16th to the 18th century. Mercantilism was not just an abstract theory; it was a practical, often aggressive approach to building national power and wealth.
At its core, mercantilists believed that a nation's prosperity depended on accumulating precious metals—primarily gold and silver. This wasn't about simply finding more metal in the ground, but earning it through trade. Mercantilists advocated for policies designed to create a "favorable balance of trade," meaning exporting more goods than the nation imported. The resulting difference would ensure a constant inflow of gold and silver into the national treasury.
This school of thought led to several key practices:
- Protectionism: Imposing high tariffs (taxes) on imported goods to protect domestic industries from foreign competition.
- Colonialism: Establishing colonies to provide cheap raw materials and serve as captive markets for manufactured goods. The mother country strictly controlled trade with its colonies to ensure wealth flowed back home.
- Subsidies: Providing government support and incentives for key domestic industries to encourage higher export volumes.
- Navigation Acts: Implementing laws that restricted colonial trade to ships owned by the mother country, cutting out foreign middle-men.
While mercantilism eventually fell out of favor as economic thought evolved—particularly with the rise of free-trade ideas championed by Adam Smith—its influence is still visible today in modern debates about trade policy and national economic security. You might hear the term used today when discussing protectionist policies or trade wars, suggesting a return to older, more nationalistic economic strategies where one nation's gain is perceived as another's loss.
Examples
- 1
Government policy
The government adopted mercantilist policies to protect its own merchants from foreign competition.
- 2
European empires
Many European empires followed a mercantilist model in the seventeenth and eighteenth centuries.
- 3
Trade deficit
A mercantilist would see a trade deficit as a sign of national weakness.
- 4
Critical label
Critics called the new tariff plan mercantilist, saying it treated trade as a contest between nations.
- Patterncall X mercantilist
describe it as mercantilist, often critically
See also
Similar
- protectionist
- economic nationalist
Shades of meaning
- state-directed
Contrast
- free-trade
- laissez-faire
Used with (collocations)
- mercantilist policy
- mercantilist doctrine
- mercantilist system
Word family
- mercantilism
Explore
- balance of trade
- tariff
Forms and spellings
1 form open this card.
Main spelling
- mercantilist