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The earthly goods of man
For this essay we will analyze a chapter of the book The earthly goods of Leo Huberman and the chapter is the 11 called "Gold Granza y Gloria" and to address the subject in question we will ask ourselves, what makes a country rich?
In the seventeenth and eighteenth centuries there was great interest in the subject because thinking in terms of a national statute of an entire nation instead of a city presented them with problems.
In the sixteenth century Spain was perhaps the richest and most powerful nation of the world and intelligent men from other nations asked themselves what the reason was and believed having found the response in the treasure that flowed in Spain due to the colonizations of thisIn America gold and silver so, the more of these metals there were in a serious country.
For these countries the mercantilists offered a solution to the favorable balance of trade, what does this mean? In policies to convert the kingdom of England to a prosperous rich state we find the answer to this question.
So the only way to do a large number of gold and silver bars come from other kingdoms and that a large number of their merchandise were taken annually to overseas and that many of these merchandise were or ended in England and thus would be changed by poundsin gold or coins and thus any country would increase its gold supply by dedicating themselves to foreign trade taking care to sell to the other nations more than they bought thus the difference in the value of their exports and the value of their imports will have to be paid inmetal.
They are the governments that believe in this theory that the more gold and silver there are in a richer country, then its next step is obvious to approve laws by prohibiting metals from the nation, a government after gold did so and the laws againstThe export of gold and silver were frequent, such measures could retain gold and silver that already had mines inside their borders or others like Spain quite fortunate, to have colonies with silver gold mines, but and withthe countries that had neither?
How could they enrich themselves by admitting as some mercantilists that money means wealth? The trick was to export merchandise or valuable products, import only what is needed and receive the difference in cash, this means stipulating the industry by all possible means because industrial products were more valuable than those of agriculture and thus they would be soldBetter in foreign markets, in addition what is equally important having the industry because in the same country manufacturing the things that the people were needing equivalent in the direction of achieving a balance favorable to trade, at the same time, towards the sufficient car country, it issay independent to others.
In the manner of Maximiliano de Auxburg in 1616 several means considered the most convenient to lift the industry, which were.
Remuneration by governments to manufactured articles for export is to say economic stimulus
Eg. The knife manufacturer he received, a government subsidy for each dozen knives that he produced, would probably strive to make more knives and to the wool hats of canvas ammunition munition.
Government’s remuneration to production had the genius of economically stimulating manufacturing.
The protectionist rate to encourage young industries was an invention as old as mercantilists and probably more, this was a form of protection against foreign competition through high rights to manufactured articles that were imported there were cases in which governments prohibited importationof certain articles under any circumstances.
Not only monopolies were made to inventors, but in some countries they were also instructed for those who wanted to devote their intelligence to the problem of importing the national industry through new and better methods.
To conclude this essay we end up saying that through trade the State reached its wealth and/or greatness and could participate in its expansion of territory, the mercantilists believed that in what the traffic concerns the losses of a country they meant the profits of another, notThey saw trade as something of mutual benefit but as a fixed amount of which each tries to win the best part.