Who Said It?
"When a king creates an office, Providence creates immediately a foot to buy it."
Jean-Baptiste Colbert
Tariff
A type of tax on an imported product.
This time period was dominated by what technological advancement?
Ships were becoming very advanced very quickly.
"To secure the greatest amount of pleasure with the least possible outlay should be the aim of all economic effort."
François Quesnay
Subsidy
Money given by the given by the government to support the economy.
Name a reason why this school was valid in its time.
- Growth of commerce was/ is constrained by liquidity
- Need money for wars
- Increased supply of money makes tax collection easier
"The crafts which require the most time intraining or most ingenuity and industry must necessarily be paid the best."
Richard Cantillon
Favorable Trade Balance
When there is more exports than imports.
Name two of the main principles of Mercantilism
- Wealth measured in terms of precious materials.
- Productivity and available resources.
- Investment in labor, infrastructure, and capital.
"The art of taxation consists in so plucking the goose as to obtain the largest amount of feathers with the least possible amount of hissing."
Jean-Baptiste Colbert
Commercialism
A more modern term for Mercantilism, a focus on maximizing profit.
Who was the highest authority in this schools eyes?
The state (Royalty, merchants, capitalists, government officials)