ECON 307

In Class Discussion Two - Mercantilism

1.  Can the theory that wealth is fixed, such that my gain is your loss, be reconciled with the reality of both population growth and an increase in the general standard of living for people? 

2. What is the "liquidity rationale" for Mercantilism? Can you think of other ways of dealing with this issue besides import tariffs, etc?  What do you think would emerge spontaneously if there wasn't enough gold to facilitate all trade (or would that not happen)?

3.  What characteristics of the Mercantilist system are still around today?   Are these good or bad?