Aim: What are the principles of mercantilism Aim: What are the principles of mercantilism? Who were the winners and losers in the European mercantilist economy?

Winners Accumulation of capital first through plunder, then “super-exploitation” of labor America is where Europe “invents” modern capitalism – large-scale combination of capital and labor Who gets it? Kings; merchants, bankers, capitalists – new classes are empowered.

Losers Slaves – plantation agriculture Native Americans – encomiendas and mining Women – increased exclusion from “paid” work European farmers, peasants, craftsmen – WHY?

Why were European workers “losers?” Agricultural improvements from the Islamic world and Columbian Exchange had lifted productivity and therefore population More workers (supply) = lower wages Price inflation due to increased money supply (gold & silver from Americas)

Mercantilist Theory European economists believed that for every economic winner there had to be an economic loser Each nation was in a competition with other nations National economic interests had to be protected as fiercely as political interests