Activities

1. Contrasting Views on Mercantilism

Mercantilism, a doctrine of many meanings, had numerous supporters during the 16th to 18th centuries. No matter what the variations, it required a powerful government - one that would regulate economic affairs. One ardent supporter of this system was Thomas Mun:

Although a kingdom may be enriched by gifts received, or by purchases taken from some other nations, yet these things are uncertain and of small consideration when they happen. The ordinary means therefore to increase our wealth and treasure is by foreign trade, where we must observe this rule: to sell more to strangers yearly than we consume of theirs in value.

Adam Smith felt that the doctrine of mercantilism confused the very purpose of an economic system:

Consumption is the sole end and purpose of all production; and the interest of the producer ought to be attended to, only so far as it may be necessary for promoting that of the consumer. The maxim is so perfectly self-evident, that it would be absurd to attempt to prove it. But in the mercantile system, the interest of the consumer is almost constantly sacrificed to that of the producer. And it seems to consider production and not consumption, as the ultimate end of all industry and commerce.

After reading both of the above selections, please answer the following:

  1. In your own words, what is Thomas Mun stating?
  2. What is the main idea of Adam Smith?
  3. What would be the best possible situation for a nation to be in, according to Mun?
  4. What would be the best, according to Adam Smith?
  5. According to the mercantilists, how can a nation increase its wealth by shipping out more than it receives?
  6. How do you think that Smith would define wealth?
  7. What actions today are taken to promote the interest of the consumer? Of the manufacturer?

2. Separating Fact from Opinion

A fact is something that has happened or is true. It can be proven. An opinion is something that cannot be proved true or false. Below are statements concerning the mercantile period. For each, please indicate whether it is fact or opinion.
  1. A nation should export more than it imports.
                      
  2. England passed the Navigation Acts to monopolize trade with the colonists.
                      
  3. Under the system of mercantilism, a favorable balance of trade meant exporting more than one imported.
                      
  4. Enumerated commodities were goods that the colonists could ship only to England.
                      
  5. During this period, colonists existed for the benefit of the mother country.
                      
  6. Had the colonists taken a vote during the 17th century, they would have been against the mercantilist system.
                      
  7. Only England, and not the colonists, gained from this 3system.
                      
  8. Smuggling is an example of colonist resistance to British regulations.
                      
  9. It was immoral for the colonists to engage in smuggling.
                      
  10. Manufacturing was restricted in the colonies prior to the American Revolution.
                      

3. Role Playing Events of the Mercantile Period

After the students have studied the mercantile period and are familiar with the pros and cons of this system, divide the class into six groups, each group representing a segment of colonial society in the period prior to 1763. The groups are as follows:

Assign an equal number of students to each group. Based upon their roles, ask each group what their attitude would have been towards the system of mercantilism. Appoint one student from each group to take notes on the various arguments given and then to report to the class the consensus of the group.

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