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Реферат на тему Mercantilism Vs Physiocracy Essay Research Paper Mercantilism

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Mercantilism Vs. Physiocracy Essay, Research Paper

Mercantilism and physiocracy are two different systems that comprise of ideas involving wealth in the economy. Each system has different views on how wealth starts, and how much government involvement is necessary to have a successful economy.

Mercantilists believe in a government regulated national economy with views to accumulate gold and silver, especially by achieving a balance of exports over imports. They believe to become wealthy you must take the wealth from someone else. You are able to trade to your advantage in the mercantilism system. An example of this would be the imperialism of Europe s expansion during the 19th century into Africa for their gold and labor. The problem with mercantilism is that goods are charged more for due to an increase in amount of money, resulting in inflation.

Physiocrates believes that agriculture starts everything. The meaning of the word physiocrates is earth rulers. Agriculture is the only enterprise that creates new wealth; wealth that flows through the economy like blood flows through the body. Students following Francos Quesnay believe that an inherent natural order properly governed society, regarding land as a basis of wealth and taxation, and advocating Laissez Faire economy. The Laissez Faire Economy, or Invisible Hand Concept, concludes that wealth will multiply without government help.


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