Attitude towards the Economic System
I believe that the mercantile system that exists in
the current economy is restraining nations’ wealth. The mercantile system aims
to improve a nation’s wealth by restraining imports and encouraging exports.
The system has dominated economic policies by aiming to bring gold and silver
into a country and maintaining domestic employment. However, this mercantilist system
has provided for military conflict between nation states in hopes to increase the
quantity of metal (currency). The disadvantage is emphasized when mercantile
classes pay levies and taxes to support armies in exchange that the government enacts
policies to protect their business from foreign competition. The unfortunate
result is the establishment of monopolies and the elimination of freer trade
among nations. It is my belief that the wealth of a nation should not be
measured solely by the quantity of gold and silver. A surplus of valuable
metals is in vain as it does not provide for much profit and decreases efficiency
greatly. In pursuing wealth by gaining gold and silver, nations are draining
their existing assets as they on the verge of war with another nation in order
to obtain more gold. Furthermore, collusive agreements between the government
and industries that exist in mercantile systems are harmful to the public and are
only beneficial to specific classes. Thus, I find the mercantile system to be
contradictory, illogical, and harmful to our economy.
Rather than relying on a mercantile system to improve our economy, it is much more practical to pursue a laissez-fair system and have freer markets. Firstly, having freer trade gives our society the ability to experience and learn about foreign markets. By exploring overseas markets, we are encouraged to further develop the production potential in our nation. Consequently, we will be able to increase what I believe is the real wealth possessed by a country; lands, houses, and consumable goods. Secondly, rather than having secret relationships between government and industry, it is more efficient to focus on the specialization of production. The division of labour will naturally allow for trade and more productivity. However, the division of labour can only occur if the manufacturer accumulates capital. By accumulating capital, the manufacturer is able to pay workers and purchase tools. The accumulation also requires manufacturers to hire more labourers thus; they will increase workers’ wages. This in return will naturally increase the supply for labour, which would also decrease child mortality. Therefore, specializing will help develop the efficiency and growth of our economy. Lastly, as I have insinuated in my previous arguments, a laissez-faire approach is needed in our economy. In other words, Laissez faire et laissez passer, le monde va de lui meme! (Let do and let pass, the world goes on by itself). Rather than establishing monopolies, it is much more beneficial to have private businesses. I believe in the concept of the “invisible hand.” The existence of multiple businesses will naturally result in competition. Consequently, competition will force businesses to improve themselves in areas such as attempting to lower production costs to increase profits, and making goods more appealing to consumers. Through the self-betterment of businesses, the economy and society will prosper.
Rather than relying on a mercantile system to improve our economy, it is much more practical to pursue a laissez-fair system and have freer markets. Firstly, having freer trade gives our society the ability to experience and learn about foreign markets. By exploring overseas markets, we are encouraged to further develop the production potential in our nation. Consequently, we will be able to increase what I believe is the real wealth possessed by a country; lands, houses, and consumable goods. Secondly, rather than having secret relationships between government and industry, it is more efficient to focus on the specialization of production. The division of labour will naturally allow for trade and more productivity. However, the division of labour can only occur if the manufacturer accumulates capital. By accumulating capital, the manufacturer is able to pay workers and purchase tools. The accumulation also requires manufacturers to hire more labourers thus; they will increase workers’ wages. This in return will naturally increase the supply for labour, which would also decrease child mortality. Therefore, specializing will help develop the efficiency and growth of our economy. Lastly, as I have insinuated in my previous arguments, a laissez-faire approach is needed in our economy. In other words, Laissez faire et laissez passer, le monde va de lui meme! (Let do and let pass, the world goes on by itself). Rather than establishing monopolies, it is much more beneficial to have private businesses. I believe in the concept of the “invisible hand.” The existence of multiple businesses will naturally result in competition. Consequently, competition will force businesses to improve themselves in areas such as attempting to lower production costs to increase profits, and making goods more appealing to consumers. Through the self-betterment of businesses, the economy and society will prosper.