Monday, 11 May 2020

“Mercantilism was a system of special subsidy and monopolistic privilege to individuals or groups favoured by the state. Economically, this seems to be a tissue of fallacy..." #QotD


Mercantilism … was a system of statism which employed economic fallacy to build up a structure of imperial state power, as well as special subsidy and monopolistic privilege to individuals or groups favoured by the state. Thus, mercantilism held that exports should be encouraged by the government and imports discouraged. Economically, this seems to be a tissue of fallacy; for what is the point of exports if not to purchase imports, and what is the point of piling up monetary bullion if the bullion is not used to purchase goods?”
        ~ Murray Rothbard, from his Economic Controversies.

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