Question

1. How is capitalism different than mercantilism?

Answer 1

1. Capitalism views wealth creation as the key to economic growth while mercantilism believes that economic prosperity can be achieved through the extraction of wealth.

2. A capitalist society supports a competitive business environment while mercantilism advocates monopoly.

3. Capitalism encourages consumer spending and enjoyment of life to the fullest in order to make the economy grow while mercantilism discourages extravagance of consumers to prevent outflow of money from the economy.

4. Mercantilism is now considered extinct while capitalism enjoys world-wide acceptance.