POLI 243 Lecture 2: Lecture 2
12 Sep 2018
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Document Summary
Criticizing mercantilist practices of the late eighteenth century. Mercantilism - about how to conduct transactions, rulers in larger states decide they want to control trade and get gold and silver. Get it through hiring mercenaries, if you want power you need gold and silver. Result is colonies, monopolistic effects of them and war of independence in us, exploitation through political privileges and the reaction to that (boston tea party) Adam smith writes the wealth of nations. How to think about wealth, wealth means what can you consume in terms of goods and services. Attack on mercantilism, also in terms of what are the goals of state policy. People should decide what their goals are, not the state. Rely on individuals to voluntarily exchange so they can benefit, free markets. After america wins the war of independence, britain has to think about if mercantilism will really work for them. Formal arguments then developed by david ricardo.
