PP203 Lecture Notes - Lecture 4: Shareware, Basic Income In Canada, Occupational Licensing
Document Summary
Mercantilism - economic system of trade from 16th-18th century, based on idea that wealth was static, nations tried to increase wealth at expense of others by maximizing imports and minimizing exports. Tactics included establishing colonies, extracting resources, and permitting them only to trade with mother country. Also setting high tariffs and granting monopolies (like the british east india and. Bernard de mandeville - the fable of the bees (1714) Greed promotes industry, consumption promotes economic growth. Increase in dexterity, saves time, facilitated by machines. European peasant better off than african king. Not from benevolence, but from self-interest, do the butcher and baker supply us with food - cooperation through barter and purchase. Money facilitates exchange (rather than paying with a whole ox) Private advantage leads merchant to discover most socially advantageous employment of capital. Smith against protectionism, don"t make at home what it"s cheaper to buy. Private interest + free market = public prosperity.
