MERCANTILISM • The word comes from the Latin word mercari,
which means “to run a trade” • It was dominant in Europe from the
16th to the mid 18th century. • It is economic nationalism for the
purpose of building a wealthy and powerful
PHYSIOCRATES • Physiocracy (from the Greek for “Government of
Nature” – Physio = Natural – Crat = rule or Rule of Nature or
Natural Law) • Their theories originated in France in mid 18th
century
Mercantilists: • Trade is zero sum game • Agriculture class was
ignored • Major wealth of nation is silver and gold • Government
intervention was encouraged • More taxes were imposed on working
labor
Physiocrats :• Trade is Positive sum game • Agriculture class
was encourage • Major wealth of nation is the working class i.e
labors • Government intervention was discouraged • Higher tax rate
on landlords and land owners