Thomas Meng And Late Mercantilism Introduction And Review

Mercantilism prevailed during the 16th and the 17th Century, which usually has two meanings: one refers to economic policy which was adopted to create mode of production of Capitalism during capital's initial accumulation; the second one refers to an economic theory which reflects commercial behalf and Mercantilism Policy. The most representative economist of Mercantilism is Thomas·Mun who is the creator of "Trade Balance" Theory. In addition, he was one of well-known tycoons in Britain, member of board of directors for Eastern Indian Company and Governmental Trade Association. Mun's theory was embodied in his famous book "England's Treasure By Foreign Trade" that was ever highly praised by Marx as " Bible for Mercantilism". In the book, Thomas·Mun explained his theories such as Trade Balance Theory, Currency Wealth Theory and National Intervention Theory. Historically, a lot of economists ever studied Post Mercantilism Theory and related economic policy. Different persons have different opinions. Marx Believes that Mercantilism is the earliest theory ever studied mode of production of Capitalism and reflected capitalists' behalf. However, the Mercantilists limited their research to circulation process and some surface phenomenon of Commercial Capital; Pro-agriculturists was against Mercantilists' points of opinions such as emphasizing the importance of currency, maximizing the quantity of currency, "National Intervention Policy" and Foreign Trade taken as the source of social wealth; Adam·Smith, one of the typical Classical Economist, detailed his doubt and opposition for Mercantilism in his book "An Inquiry Into The Nature And Causes Of The Wealth On Nations"; Finally, Keynes revealed his "Neo-Mercantilism" trend in his book "Employment, Interests and Currency". However, no theory can be independent on the historical background and its era. Mercantilism applies to this rule. Mercantilism did help facilitate the economic life and economic theory of Western Europe of its times, especially for the disintegration of Feudalism and creation for Mode of Production of Capitalism. Currently, for China economy, Mercantilism Theory and related Policy can still be used for reference for our Foreign Trade development. Of course, we should not accept the theory blindly, but look upon it with historical criticism. We should make the best of it assimilating the essence and rejecting the dross.