CAPITALLSM and MERCANTILISM

By John Bell and Ryan Zalenty

CAPITALISM


  • a combination of practices that was in Europe between the 16th and 19th centuries, especially involving trade in ownership of corporations for buying and selling goods, especially capital goods including land and labor, in a relatively free market.

  • competing contentious theories that developed in the 19th century, in the context of the industrial revolution and 20th century in the Cold War, meant to justify the private ownership of capital, to explain the operation of such markets, and to guide the application or elimination of government of property and markets.

  • capitalism is no longer here because of the triangular trade. which was a system where people enslaved other people of the same race.

MERCANTILISM

  • The British had an empire to run. The way that they kept their town healthy was through a system called mercantilism.

  • Mercantilism was popular in the 17th and 18th centuries. In this system, the British colonies were moneymakers for the country. The British put restrictions on how their colonies spent their money.

  • Colonists, particularly in New England, rebelled against these acts by illegally smuggling goods in and out of the colonies. Ships from the colonies often loaded their holds with illegal goods from the French, Dutch , and Spanish West Indies. The smugglers would pay bribes to British customs officials who were hired to trade in the colonies.

  • England continued to tax the colonies. But since trade and taxation were difficult to control from far away, England made an agreement with the colonies. They would continue to regulate trade but allow colonists the right to levy their own taxes.

Mercantilism

Comparison


  • In 1450-1750, mercantilism and capitalism were two dominant forms of economy. Both economies were similar in the way that they both originated in Europe and promoted trade between countries and were different in the way that capitalism revolves around wealth creation while mercantilism revolves around wealth accumulation and gold bullions.

  • Capitalism and mercantilism are two similar forms of free market economy. Both forms of economy originated in Western Europe. Capitalism was created after mercantilism in order to support mercantilist ideas.

So What

It is important to know Mercantilism and Capitalism because it can teach us how to use trade and how to save money because the British put restrictions on how to spend money.

Now What

We can use what we learned about capitalism and mercantilism in life because it can teach us about history.