Mercantilist Doctrine

MERCANTILISM

        In West Europe countries, with the end of the medieval and period between industrial revolution, it appears with collapse of feudalism and establishment of strong central states.Economically, this epoch was ,the conditions of the preparing capital accumulation and market economy, while commercial capitalism's the age of development.Mercantilism, reflecting the ideology of the new commercial capitalist class as '' Economic Policy'' , roughly it was determined the principles of ''Economic Policy'' of national countries for three centuries.

''Economic Policy'' phrase used first by Mercantilists.

Conditions That Prepare The Economic Infrastructure and Economic Thinking

        Towards the end of the medieval ages,Some of factors, it will be change the economic bases of western european society,emerged.Once, trade expanded with overseas explorations.Followed by gold flowing to Europe,it raised the prices and it enlarged the commercial capital and it opened profitable new business sectors, on the other hand immovable property revenues and living nobility. it made them poor.Secondly,changes in agricultural production techniques destroyed to subsistence traditional economy order.Agricultural production changed own ways to market,it became bound with market laws to commercial capital.With the possibilities of increased profit in commercial, it was effective to development in ''individualism'' ,the movement of Reformation in Religion and Renaissance and humanism.

        The commercial devolopments, it made conflicting the merchants interests,they started to need central guards to save them from opponents.Establishment of the Monarchy and Central countries,beside the development of commercial it made possible to apply Economy Policy.Mercantilists said ''The profit of Merchants was identical with national interests,it was form of strong of country.'' For the merchants have a identicals with national interests,mercantilist doctrine as '' Monarchy and newly developed countries '' approximately it was represented the ''Economic Thought''' for three hundreds centuries.

Economic Thought of Mercantilism

     Basic Principles

1. Mercantilists brought principle of love and loyalty to gold and valuable metals.
2. For them there was a only one important things its as large as possible to collect,save gold and silver.
3. They believed that Economy Policy had to be a protector and statist before everything else.
4. For their military interests they tried to encourage population growth.

       ''Residual'' known by Mercantilists, it can only be achieved with foreign commercial balance.

        One country became rich while another country became poor. Mercantilists knew that so they confirmed, there was conflict of interest of countries.Protectionism in foreign commercial,it was became their 'foreign commercial policy.' This thought completely different from ''Liberal Economic Doctrine.''
        Mercantilists really care of with money,especially they regarded money as identical with capital,this situation needs to provide more by in foreign trade balance protection policy.In the related ages and countries currency was gold and silver metals.The banking system has not improved enough.Under these conditions,the only to increase the valuable mine supply - the related valuable mine as long as it is not produced in the country - thanks to foreign commercial balance, to country , to provide to valuable mine entry.

Mercantilists said ''The greatest treasure of a country, a well-nourished population.''

National Wealth Concept

          Mercantilism '' national wealth '' tended to keep the interests of merchants in the foreground.The countries power being in wealth.Wealth occurred from valuable metal mine.

The valuable metal mines obtained from foreign commercial surplus.

Countries Merkantilist Policy

Has become '' economic policy '' system that shows differences in every country of Europe.It has not been a ordinary system.

1. British-Holland School:This school's members directed theirs ways to free commercial and production. This school became ''Merchants' Thought.'' more than others.
2. French School(Colbertism):They supported state handed industrialization.
3. German School(Cameralists):They gave their importance to state finance and state management;their publications have written by public enterprise directors, university profs, government advisors.
4. Italian-Spain School:They focused on money subjects;Reason of being Catholic they couldn't get rid of medieval thoughts.

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Physiocracy

PHYSIOCRACY

 ''Capitalism In Agriculture''

What is the meaning of Physiocracy?

   

         Physiocracy is a school founded by  François Quesnay. Physio  meaning of ''nature'' , cracy meaning of ''rule'' . As a result that is all mean ''Rule of Nature.'' Actual members of this school didn't call themselves as a Physiocrat, they called themselves as an Economists.

         Liberal economic doctrine or laissez-faire*. In the eighteenth century Physiocracy emerged as a reaction to Mercantilism and emerged as the representative for the newborn industrial capitalism.

Initially, it was appropriate to France's economic structure; it was representativing agricultural capitalism.Later, it started to be a representative as a new industrial capitalism in France and England. New rising entrepreneur class,they all against the every limited activity of own in public. Mercantilism's monopoly, public inspections,privileges,the lands of the aristocrats, they were against of all but for their own benefits they were want fredom, personal initiative and audit.

          In fact, economic thought of the physiocrats who established a short effective economic theory system, '' In 1750 wasn't available. In 1756-70, everyone was talking about it but in 1780 everyone forgot it.''
         
        Physiocrats didn't see the money as only a 'sharing goods' , at the same time , they didn't forget to keep in mind the effect of on total economic activity. The following school, they watched different ways from schools of Classics and Neo-Classics, Physiocrats didn't see 'saving money' as beneficial.

Representatives of Physiocracy

Outlines of Physiocrat Doctrine

Natural Order

Net Income

Single Tax and Free Foreign Trade

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1-Natural Order

       Physiocrats's orders,It is a regularity desired by GOD for people's happiness. People should learn this order. People's personal interest shouldn't go against thsi order.

2-Net Income

        According to Physiocrats net income,roughly meaning of today's national income. According to Physiocrats net income can only be taken from agriculture. Because the only point of cooperation its agriculture.

3-Single Tax and Free Foreign Trade

        Single tax was result of net income theory.Physiocrats,for the successful execution of the single tax system,they also saw the need to increase net income.For this, They thought the small village agriculture should be equal with big capitalist agricultural businesses.

      

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