1) Sir James Steuart
Sir James Steuart, a prominent Scottish economist of the 18th century, made significant contributions
to the field of economics, particularly in the realm of mercantilism. Born in 1712 in Edinburgh,
Steuart's work laid the foundation for the understanding of economic systems and policies during his
time. Mercantilism, the prevailing economic doctrine in Europe during the 16th to 18th centuries,
emphasized the accumulation of wealth, particularly in the form of precious metals, as a measure of
a nation's economic success. Steuart delved into this economic ideology, offering his insights and
critiques that would shape the discourse of his era.
One of Steuart's key contributions to mercantilism was his emphasis on the importance of state
intervention in economic affairs. Unlike some of his contemporaries who believed in a laissez-faire
approach, Steuart argued for a more active role of the state in managing and directing economic
activities. He believed that the government should play a pivotal role in promoting economic growth,
ensuring stability, and safeguarding the interests of the nation. Steuart's most notable work, "An
Inquiry into the Principles of Political Economy," published in 1767, elucidated his thoughts on
economic policy and mercantilist principles. In this work, he advocated for state regulation of trade
and industry, contending that government intervention was necessary to ensure the prosperity and
security of the nation. Steuart believed that by strategically regulating commerce and industry, a
nation could enhance its economic power and accumulate wealth.
One of the key aspects of Steuart's mercantilist philosophy was his focus on the balance of trade. He
argued that a positive balance of trade, where a nation exports more than it imports, would lead to
the accumulation of wealth and economic strength. To achieve this, Steuart recommended protective
measures such as tariffs and subsidies to promote domestic industries and ensure a surplus in the
trade balance. Steuart's views on money and currency also played a crucial role in his mercantilist
framework. He emphasized the importance of maintaining a stable and sufficient money supply to
facilitate economic transactions. In his view, a judicious management of the currency by the state was
essential to prevent inflation and maintain the overall economic stability of the nation.
Steuart's "Inquiry" was not without its flaws. His commitment to the accumulation of precious metals
limited his appreciation for the potential of paper money and credit. His defense of state intervention
in the economy could be seen as a step back from nascent ideas of free markets. Yet, it's crucial to
recognize Steuart as a bridge between two eras. He inherited the framework of mercantilism but
injected it with elements of complexity, nuance, and an embryonic understanding of broader
economic forces. His work served as a stepping stone for the Scottish Enlightenment thinkers who,
with Adam Smith at the helm, would dismantle mercantilism and lay the foundation for classical
economics. Sir James Steuart remains a noteworthy figure in the history of economics, and his work
continues to be studied and appreciated for its impact on the development of economic theories.
2) Jacques Necker
Jacques Necker, a Swiss banker and statesman, made notable contributions to economic thought
during the 18th century, particularly in the context of mercantilism. Born in Geneva in 1732, Necker's
ideas and policies left a lasting impact on economic discourse, particularly in France where he served
as the finance minister under King Louis XVI. Imagine stepping into the shoes of a doctor treating a
complex, and rather grumpy, patient: the French economy in the 1700s. That's the task Jacques
Necker, a Swiss banker turned French finance minister, took on. Though not a strict mercantilist like
others of his time, Necker's economic philosophy held strong ties to the "doctoring" of national
wealth.
Mercantilism, the prevailing economic doctrine of Necker's time, emphasized the importance of
accumulating wealth through a positive balance of trade, state intervention, and the protection of
domestic industries. Necker's engagement with these ideas, combined with his practical experience
in finance, marked him as a key figure in the development of economic thought during this period.
Necker's most significant contribution to mercantilism was his pragmatic approach to economic policy.
As the finance minister of France from 1777 to 1781 and later from 1788 to 1789, Necker faced the
challenge of managing the country's finances during a period of economic turmoil and social unrest.
His policies were characterized by a moderate stance, combining elements of both mercantilist and
liberal economic principles.
One of Necker's key insights into mercantilism was his recognition of the importance of a wellregulated and transparent financial system. He aimed to improve fiscal accountability and provide
detailed public reports on the state of France's finances, a practice that was groundbreaking at the
time. Necker believed that by ensuring transparency and accountability, he could build public trust
and create a stable economic environment. In the realm of trade and industry, Necker implemented
policies to protect and promote domestic production. He recognized the significance of a balanced
trade relationship and sought to boost France's economic strength by supporting its industries. Necker
implemented tariffs and trade regulations to protect French manufacturers, contributing to the
mercantilist notion of fostering a positive balance of trade.
While Necker advocated for certain mercantilist principles, he also displayed a nuanced understanding
of economic dynamics. Unlike strict adherents of mercantilism, he acknowledged the limitations of
protectionist policies and recognized the importance of promoting efficiency and productivity within
domestic industries. This pragmatic approach reflected his awareness of the evolving economic
landscape and the need for adaptability in economic policy.
Necker's influence extended beyond his time in office. His writings, particularly "Compte Rendu au
Roi" ("Report to the King"), a detailed report on France's finances, became widely read and discussed.
In this report, Necker emphasized the importance of responsible fiscal management and the need for
a balanced budget, aligning with some mercantilist principles while also recognizing the benefits of
fiscal responsibility.
While Jacques Necker's contributions to mercantilism were not as doctrinaire as some of his
contemporaries, his pragmatic and transparent approach to economic policy had a lasting impact on
the trajectory of economic thought. By navigating the complexities of French finances and
implementing policies that reflected a blend of mercantilist and liberal ideas, Necker demonstrated a
nuanced understanding of economic principles that contributed to the evolution of economic thought
in the late 18th century.
3) Jean-Baptiste Colbert
Jean-Baptiste Colbert, a key figure in 17th-century France, played a pivotal role in shaping economic
policies that were rooted in the principles of mercantilism. Born in 1619, Colbert served as the Minister
of Finance under King Louis XIV from 1665 to 1683. Colbert aimed to make France the envy of Europe
using an economic philosophy called mercantilism but with a unique twist. Mercantilism, the
prevailing economic doctrine of the time, emphasized the idea that a nation's wealth and power could
be maximized by increasing exports, accumulating precious metals, and promoting domestic
industries. Colbert, a staunch advocate of mercantilist principles, implemented a series of policies
aimed at strengthening the French economy and enhancing the power of the state.
One of Colbert's primary contributions to mercantilism was his emphasis on the balance of trade. He
believed that a favorable balance of trade, where a nation exports more than it imports, would result
in the accumulation of wealth. To achieve this, Colbert implemented protectionist measures to shield
French industries from foreign competition. He imposed tariffs on imported goods and provided
subsidies to domestic industries, fostering a climate that aimed to reduce reliance on foreign products
and boost the export of French goods.
Colbert was instrumental in establishing a highly regulated economic system, where the state played
an active role in overseeing and promoting various industries. He believed that government
intervention was crucial for economic success. Colbert's policies included the creation of statesponsored manufacturing guilds, which aimed to regulate production standards and ensure the quality
of goods. These guilds helped in coordinating economic activities and aligning them with the
objectives of the state. In addition to protecting and promoting domestic industries, Colbert
recognized the importance of a strong navy for maritime trade. He implemented policies to bolster
France's naval power, understanding that control over trade routes and colonies was essential for
economic dominance. Colbert's efforts contributed to the expansion of French overseas trade and the
establishment of colonies, aligning with the mercantilist goal of securing valuable resources and
markets.
Colbert's approach to taxation also reflected mercantilist principles. While he implemented taxes to
fund the activities of the state, he sought to do so in a way that minimized the burden on domestic
industries. His focus on efficient tax collection and management aimed to support economic growth
rather than stifle it. One of Colbert's enduring legacies is the development of a detailed and
comprehensive economic plan known as the "Colbertist System." This system outlined the principles
and strategies for economic development, emphasizing the role of the state in shaping economic
outcomes. The Colbertist System laid the groundwork for future economic policies in France and
influenced subsequent generations of economic thinkers.
While Colbert's mercantilist policies were successful in some aspects, critics argue that they may have
stifled innovation and hindered long-term economic development. Nevertheless, his impact on
shaping the economic landscape of 17th-century France cannot be overstated. Jean-Baptiste Colbert's
contributions to mercantilism, through his emphasis on protectionism, state intervention, and the
balance of trade, played a crucial role in defining the economic policies of his time and influencing
subsequent generations of economic thought.
4) Richard Cantillon
Richard Cantillon, an influential economist of the 18th century, made significant contributions to the
understanding of economic systems, particularly in the context of mercantilism. Born in Ireland
around 1680, Cantillon's work laid the groundwork for later economic thinkers and played a crucial
role in shaping the emerging field of economics. Mercantilism was the prevailing economic doctrine
during Cantillon's time. It was an economic theory that emphasized the importance of a nation's
wealth being measured by its accumulation of precious metals, such as gold and silver. Nations
believed that exporting more than importing would lead to an influx of these precious metals, thus
increasing their wealth. Cantillon, however, challenged and expanded upon these ideas in his seminal
work, "Essay on the Nature of Commerce in General."
One of Cantillon's key contributions to mercantilism was his exploration of the role of
entrepreneurship in the economic system. He introduced the concept of the entrepreneur as an
individual who takes risks by allocating resources to create goods and services for profit. In doing so,
Cantillon highlighted the dynamic nature of markets and the pivotal role played by those who take
calculated risks to meet the ever-changing demands of consumers.
Cantillon's understanding of entrepreneurship was groundbreaking for its time. He recognized that
entrepreneurs played a crucial role in the allocation of resources and the functioning of markets. In
contrast to the mercantilist focus on accumulating precious metals through trade imbalances,
Cantillon saw entrepreneurship as the driving force behind economic growth and prosperity.
Furthermore, Cantillon delved into the idea of a circular flow of income, illustrating how money
circulates through an economy. He described how individuals and businesses interacted, exchanged
goods and services, and how prices were determined by the interplay of supply and demand. This
perspective challenged the simplistic mercantilist view of wealth accumulation through hoarding
precious metals.
Cantillon's work also included insights into the concept of opportunity cost, an essential element in
economic decision-making. He emphasized that individuals and businesses must weigh the benefits
of one choice against the potential benefits foregone by not choosing an alternative. This idea added
a layer of sophistication to economic thought, moving beyond the mere accumulation of precious
metals as the sole measure of a nation's wealth. While Cantillon's contributions to economics were
profound, his ideas were not widely recognized during his lifetime. His "Essay on the Nature of
Commerce in General" remained unpublished until after his death in the early 18th century. However,
his work eventually gained recognition and influenced later economists, including notable figures like
Adam Smith and Jean-Baptiste Say.
In summary, Richard Cantillon made significant contributions to the understanding of economic
systems, particularly in the context of mercantilism. His emphasis on entrepreneurship, the circular
flow of income, and the concept of opportunity cost challenged traditional mercantilist views and laid
the groundwork for the development of modern economic thought. Cantillon's ideas continue to
resonate in the study of economics, and his work remains an important part of the intellectual history
of the discipline.
5) Josiah Child
Josiah Child, an influential figure in the 17th-century England, made notable contributions to the
economic doctrine of mercantilism. Born in 1630, Child was not only a successful merchant but also a
prominent writer whose ideas played a crucial role in shaping the economic policies of his time. During
the 17th century, mercantilism was the prevailing economic philosophy, and nations believed that
accumulating wealth in the form of precious metals, such as gold and silver, was vital for economic
success. Josiah Child, however, brought a nuanced perspective to mercantilism through his writings
and practical experience.
Child's most notable work was "A New Discourse on Trade," published in 1690, where he laid out his
economic ideas. One of his key contributions was advocating for free trade and opposing the strict
mercantilist policies that dominated the era. While many adhered to the belief that a nation's wealth
depended on a positive balance of trade, with exports exceeding imports, Child argued for the benefits
of unrestricted commerce.
In contrast to the prevailing mercantilist notion that a nation should strive to export more goods than
it imported to accumulate precious metals, Child argued that the focus should be on promoting trade
and allowing markets to operate freely. He believed that government interference and restrictive
trade policies hindered economic growth and prosperity. Child's advocacy for free trade was a
departure from the conventional mercantilist emphasis on protectionism and state control.
Furthermore, Child contributed to the understanding of the role of currency in economic systems. He
recognized the importance of a stable and well-regulated currency for fostering trade and economic
development. Child's ideas on currency were instrumental in shaping the monetary policies of his
time, as he emphasized the need for a reliable medium of exchange to facilitate transactions.
Child also discussed the relationship between interest rates and economic growth. He argued that
lower interest rates could stimulate investment and economic activity, leading to increased wealth for
the nation. This perspective challenged the prevailing mercantilist belief that accumulating precious
metals should take precedence over other economic considerations. While Josiah Child's ideas were
not universally accepted during his lifetime, his influence grew in the years that followed. His advocacy
for free trade and a more liberal economic approach laid the groundwork for the eventual shift away
from strict mercantilist policies. His work influenced later economists and policymakers, contributing
to the evolution of economic thought in the 18th century.
In conclusion, Josiah Child made significant contributions to the economic doctrine of mercantilism
during the 17th century. His emphasis on free trade, stable currency, and the relationship between
interest rates and economic growth challenged the prevailing mercantilist ideas of the time. Child's
writings and practical insights played a crucial role in shaping the economic policies of his era and
paved the way for the eventual transition to more liberal economic philosophies in the centuries that
followed.
6) David Hume
David Hume, an influential Scottish philosopher and economist of the 18th century, made substantial
contributions to the field of economics, particularly in critiquing and reshaping mercantilist ideas. Born
in 1711, Hume's works, such as "Political Discourses" and "Essays, Moral, Political, and Literary,"
challenged prevailing economic theories and laid the foundation for future economic thought.
During Hume's time, mercantilism was the dominant economic philosophy. Mercantilists believed in
the importance of accumulating wealth, particularly through a favorable balance of trade, with
exports exceeding imports. However, Hume's insights brought a fresh perspective to these ideas,
contributing to the evolution of economic thought.
One of Hume's notable contributions was his critique of the mercantilist emphasis on a positive
balance of trade. He questioned the notion that accumulating precious metals, such as gold and silver,
should be the primary objective of economic policy. In his essay "On the Balance of Trade," Hume
argued that a nation's wealth should not be solely measured by the amount of gold and silver it
possessed. Instead, he emphasized the importance of considering a broader range of factors, such as
the productivity of labor and the overall prosperity of the population.
Hume's critique challenged the mercantilist belief that a nation could only gain wealth at the expense
of others. He argued that international trade could be mutually beneficial, with both trading partners
gaining from the exchange of goods and services. This idea paved the way for a more nuanced
understanding of global economic relationships, shifting the focus from a zero-sum game to the
potential for shared prosperity through trade. Furthermore, Hume explored the concept of the pricespecie flow mechanism, a key element in understanding international trade and the balance of
payments. He posited that if a country experienced a trade surplus and accumulated more gold and
silver, its money supply would increase. As a result, prices would rise, making the country's goods
more expensive and less competitive on the international market. Conversely, a trade deficit would
lead to a decrease in the money supply, causing prices to fall and making the country's exports more
attractive. This insight added depth to the understanding of how changes in the money supply and
prices could impact trade dynamics.
In addition to his contributions to trade theory, Hume's insights extended to the role of money in the
economy. He recognized the importance of a stable and well-regulated monetary system and
cautioned against the dangers of excessive money creation leading to inflation. Hume's ideas on
money and inflation influenced later economic thinkers and contributed to the development of
monetary theory.
In summary, David Hume made significant contributions to economics during the 18th century,
particularly in challenging and reshaping mercantilist ideas. His critique of the mercantilist emphasis
on a positive balance of trade, along with his insights into the price-specie flow mechanism and the
role of money in the economy, laid the groundwork for a more nuanced and comprehensive
understanding of economic relationships. Hume's ideas continue to be influential in the study of
economics, marking a crucial point in the evolution of economic thought.
7) Thomas Mun
Thomas Mun, a 17th-century English merchant and economist, played a crucial role in shaping the
economic policies of his time, particularly in the development and promotion of mercantilism. Born in
1571, Mun's ideas and contributions had a lasting impact on the economic landscape of his era.
Mercantilism was the prevailing economic theory during Mun's lifetime, and he became a prominent
advocate for its principles. Simply put, mercantilism was an economic system that emphasized the
importance of accumulating wealth, especially gold and silver, as a measure of a nation's prosperity.
Mun believed that a nation's economic strength depended on its ability to export more than it
imported, creating a favorable balance of trade.
Mun's most notable work, "England's Treasure by Forraign Trade," published in 1664, is a cornerstone
of mercantilist thought. In this work, Mun articulated several key ideas that became fundamental to
mercantilist economic policies. One of Mun's central arguments was the concept of the "balance of
trade," where he urged nations to export more goods than they imported. According to Mun, this
trade surplus would result in the accumulation of precious metals, contributing to the overall wealth
of the nation.
To achieve a favorable balance of trade, Mun advocated for the implementation of protectionist
measures, such as tariffs and subsidies, to encourage domestic production and discourage the
importation of goods that could be produced domestically. He believed that a strong domestic
economy was essential for a nation's prosperity and that government intervention was necessary to
protect and promote local industries. Mun also emphasized the importance of a strong navy to protect
trade routes and ensure the safety of merchants engaged in foreign trade. He argued that a powerful
navy would secure access to valuable overseas markets, enabling a nation to increase its exports and
enhance its economic standing.
Furthermore, Mun recognized the significance of a well-functioning monetary system. He stressed the
need for a stable currency and the careful management of the money supply to maintain economic
stability. Mun's views on the importance of sound money and the role of the government in
overseeing monetary policy influenced later economic thinkers and policymakers. Thomas Mun's
ideas were instrumental in shaping the economic policies of his time, and many of his mercantilist
principles were adopted by European nations during the 17th and 18th centuries. While mercantilism
has since been surpassed by other economic theories, Mun's contributions laid the groundwork for
understanding the relationship between trade, wealth accumulation, and the role of the state in
economic affairs.
In conclusion, Thomas Mun's impact on the development of mercantilism cannot be overstated.
Through his influential work, "England's Treasure by Foreign Trade," Mun provided a theoretical
framework that guided economic policies in Europe for generations. His emphasis on a favorable
balance of trade, protectionist measures, a strong navy, and sound monetary policies shaped the
economic landscape of his era and left a lasting legacy in the annals of economic thought.
8) John Locke
John Locke, a prominent figure of the 17th century, was not only a philosopher but also made
significant contributions to the economic theory of mercantilism. Mercantilism was the prevailing
economic ideology of the time, emphasizing the importance of accumulating wealth, particularly in
the form of precious metals like gold and silver, to enhance a nation's power and prosperity.
Locke's ideas on mercantilism were rooted in his broader philosophy, which stressed individual rights,
limited government, and the concept of private property. Born in 1632, Locke lived during a period of
political and economic upheaval, which greatly influenced his thoughts on governance and economics.
One of Locke's key contributions to mercantilism was his emphasis on the importance of labor as the
source of wealth. In his work "Two Treatises of Government," Locke argued that individuals have a
natural right to acquire property through their labor. This perspective challenged the traditional
mercantilist view that wealth was primarily derived from the accumulation of gold and silver through
a favorable balance of trade.
Locke's focus on labor as the foundation of wealth had profound implications for mercantilist
economic policies. He believed that a nation's prosperity should be measured by the productivity of
its people and the efficient use of resources. In contrast to the mercantilist emphasis on accumulating
precious metals through trade surpluses, Locke advocated for policies that promoted domestic
industry and agricultural production.
Furthermore, Locke's ideas on private property and individual rights influenced his views on
government intervention in the economy. While mercantilism often involved extensive state control
and regulation, Locke argued for a limited government that protected individual rights and property.
He believed that individuals, acting in their self-interest, would contribute to the overall economic
well-being of the nation.
Locke also critiqued the mercantilist policy of hoarding precious metals. He contended that the true
wealth of a nation lay in its ability to produce and exchange goods. In his view, a nation should focus
on fostering a diverse economy with a strong emphasis on innovation and trade. This perspective
challenged the mercantilist emphasis on a zero-sum game where one nation's gain was perceived as
another's loss.
In summary, John Locke's contributions to mercantilism were transformative, challenging the
traditional views of wealth accumulation through precious metals and emphasizing the role of labor
and individual rights. His ideas laid the groundwork for a more nuanced understanding of economic
prosperity, influencing later economic thinkers and contributing to the development of classical
economics. Locke's legacy extends beyond philosophy into the realm of economics, where his ideas
continue to shape discussions on individual rights, property, and the role of government in promoting
economic well-being.
9) William Petty
William Petty, a 17th-century English economist and philosopher, played a crucial role in shaping the
economic theory of mercantilism. Born in 1623, Petty lived during a time of great economic and
political change, and his ideas had a lasting impact on the development of economic thought. At the
core of Petty's contributions to mercantilism was his emphasis on the importance of quantifiable data
and empirical observation in economic analysis. His work laid the foundation for a more systematic
and scientific approach to economic inquiry. In his major work, "Political Arithmetick" (1676), Petty
advocated for the use of statistics and quantitative methods to understand and improve the economic
condition of a nation.
One of Petty's key ideas in the context of mercantilism was the concept of wealth as a measure of a
nation's power. He argued that a nation's strength and prosperity could be gauged not only by its
stock of precious metals but also by considering its overall economic output. This departure from the
traditional mercantilist focus on gold and silver accumulation marked a significant shift in economic
thinking. Petty was also known for his views on the importance of population in economic
development. He believed that a large and productive population was essential for a thriving
economy. Unlike some mercantilists who saw a population increase as a drain on resources, Petty
recognized that a growing population could contribute to increased production and economic vitality.
In terms of trade, Petty made contributions to mercantilist thought by proposing policies aimed at
achieving a favorable balance of trade. He believed that a nation should export more than it imported
to accumulate wealth. However, unlike strict mercantilists, Petty recognized the benefits of
international trade and argued for policies that would encourage exports of finished goods over raw
materials. Petty's ideas on taxation were also influential in mercantilist circles. He proposed a
progressive income tax, where individuals with higher incomes would pay a larger share of taxes. This
progressive tax system, according to Petty, would help fund government activities while minimizing
the burden on the less affluent members of society.
Furthermore, Petty's work delved into the concept of "political arithmetick," where he sought to
quantify and analyze various aspects of economic life, including population, production, and trade.
This empirical approach laid the groundwork for later developments in economic statistics and the
systematic study of economic phenomena.
In summary, William Petty made significant contributions to mercantilism by shifting the focus from
the mere accumulation of precious metals to a broader consideration of a nation's overall economic
well-being. His emphasis on quantitative analysis, population growth, and a more nuanced approach
to trade influenced the evolution of mercantilist thought and paved the way for the development of
modern economic theory. Petty's legacy endures as a pioneer in the application of empirical methods
to economic analysis, shaping the way economists approach the study of economies and societies.