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pampango

(24,692 posts)
19. Mercantilism is not 'competition among nations'. It is economic policy to benefit one country over
Thu Mar 26, 2015, 10:29 AM
Mar 2015

others. In fact, mercantalists specifically reject open competition among nations by using policies such as high tariffs, export subsidies and non-tariff barriers to trade that do the exact opposite of promoting 'competition among nations'.

Mercantilism was an economic theory and practice, dominant in Europe from the 16th to the 18th century, that promoted governmental regulation of a nation's economy for the purpose of augmenting state power at the expense of rival national powers. It is the economic counterpart of political absolutism. Mercantilism includes a national economic policy aimed at accumulating monetary reserves through a positive balance of trade, especially of finished goods. Historically, such policies frequently led to war and also motivated colonial expansion. The Mercantilism theory varies in sophistication from one writer to another and has evolved over time. High tariffs, especially on manufactured goods, are an almost universal feature of mercantilism policy. Other policies have included:

Building overseas colonies;
Forbidding colonies to trade with other nations;
Monopolizing markets with staple ports;
Banning the export of gold and silver, even for payments;
Forbidding trade to be carried in foreign ships;
Export subsidies;
Promoting manufacturing with research or direct subsidies;
Limiting wages;
Maximizing the use of domestic resources;
Restricting domestic consumption with non-tariff barriers to trade.

http://en.wikipedia.org/wiki/Mercantilism

Believers in the 'free market' do not reject competition among nations. Germany, Sweden and essentially all European countries trade more "freely" (without tariffs or other restrictions) than the US does. Such trade inherently represents a competition among nations as opposed to mercantilism.

With respect to support for unions, you seem to be differentiating between Liberal and Social Democratic parties - which in a European context is fair enough. From an American perspective 'liberals' tend to support unions and 'conservatives' tend to oppose them.

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It is impossible for me to comprehend. joshcryer Mar 2015 #1
I suppose the collective memory of the evil of fascism is dying with that generation passing away. pampango Mar 2015 #2
True, that. joshcryer Mar 2015 #3
I think they are misguided Yorktown Mar 2015 #4
The liberals are "misguided" but not the far-right? The latter simply reflects "reasonable fear"? pampango Mar 2015 #7
You got me wrong Yorktown Mar 2015 #10
Yes. The violence in the middle east Quantess Mar 2015 #14
OK, I'm trying to find your Tower Hamlets segregated swimming pool story muriel_volestrangler Mar 2015 #21
The same thing is happening in the States, for many of the same reasons. GliderGuider Mar 2015 #5
And that is what we need to address. These things are fearful but FDRs words ring even truer today jwirr Mar 2015 #26
Don't forget that rogerashton Mar 2015 #6
Most liberals in Europe do believe in markets though they have tempered that with strong safety pampango Mar 2015 #8
In Britain, since Maggie's time rogerashton Mar 2015 #9
"I don't think you will find that any European liberals are pro-union." Really? pampango Mar 2015 #13
Read Adam Smith a bit more carefully! rogerashton Mar 2015 #18
Mercantilism is not 'competition among nations'. It is economic policy to benefit one country over pampango Mar 2015 #19
You previously wrote: rogerashton Mar 2015 #20
The Lib Dems do not oppose unions muriel_volestrangler Mar 2015 #24
The so-called European 'far Right' is National Socialist Yorktown Mar 2015 #11
That certainly proves that nazis din't believe in the 'free market'. Nationalism and militarism pampango Mar 2015 #15
The 2 British politicans in the OP are Liberal Democrats muriel_volestrangler Mar 2015 #23
Right, well rogerashton Mar 2015 #28
Yes, as I said, they are not socialists, and neither is the US Democratic party muriel_volestrangler Mar 2015 #29
The EU exists only to further neoliberalism and capital run amok so I hope it busts. TheKentuckian Mar 2015 #12
Let's hope that the income equality and overall prosperity in Europe does not go bust pampango Mar 2015 #16
The whole agenda of the EU is to undo income equality, strip away those protections, TheKentuckian Mar 2015 #22
If that were true, Europe would not have the world's best income equality and would have lost pampango Mar 2015 #25
No, I meant what I said not what you want to jump off on. Why do you just put words in people's TheKentuckian Mar 2015 #27
Thermodynamics The2ndWheel Mar 2015 #17
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