History of Economics Thought

Merchantilism
Ahmad Chafid Alwi, S.Pd., M.Pd
2000-113-0002484

Seleksi Kompetensi Bidang CPNS

December 15th, 2018
Learning objectives
After taking part in Problem Based Learning, students are able to:
1. Describe the background of the birth of mercantilism
2. Analyze the phenomena found in mercantilist times
3. Analyze the thoughts of mercantilists
4. Creating strategic ideas to face the mercantilist return
 History of Economics Thoughts

Pre-Clasic Clasic Presents

3G
Gold
Glory
Gospel
Merchantilist Principles (Philip Wilhelm von
Hornich, 1684)
• That every inch of land is used for agriculture, mining and manufacturing
• That all raw materials found in a country are used for manufactured goods
• The workforce population must be enlarged
• That all exports of gold and silver are prohibited and all domestic money
must remain in circulation
• No imports are allowed if similar items can be supplied domestically
• If imports are very necessary, the goods are obtained directly and
exchanged for domestic goods
• Try to import raw materials to make final goods
 16 – 17 Century
Resources Become Priorities
ANOMALIES
• Trust that wealth will be maximized
by the accumulation of goods
• Increase in the amount of prices in
the country once a trade surplus
• A favorable trade balance will run
long and will not lose money
John Locke:

M*V = P*y
Mercantilists fear the consequences
of too much freedom so they rely on
the state to plan and regulate
economic life
OTHER
PROBLEMS:
1. International trading is beat domestic
market, thus creating the "black
market"
2. Low wage policy make "the poor
becomes poorer"
3. Violation patent rights
4. Mercantilists only care about own
nation and aims to make aristocrats
richer
 History of economics Thoughts

Pre-Clasic Clasic Presents

today's
phenomenon
Today’s Phenomenon
 Today’s Phenomenon

So many of their
products flood
the production
market in our
country
Your challenge
As an economic thinker, write an
article about the strategic steps
to face the "return of the
mercantilism era"
References
• Deliarnov, 1997, Perkembangan Pemikiran Ekonomi.
• Skousen, Mark. 2006. Sang maestro. Teori-teori ekonomi modern.
Jakarta: Prenada
• Ekelund & Hebert. 2007. A history of economic theory and method. Fifth
edition. Long grove: Waveland
• Spiegel, Heary William, 1991. The Growth of Economic Throght. Duke
University Press. London
• Sumitro Djojo Hadikusumo 1981, Perkembangan Pemikiran Ekonomi,
Yayasan Obor Indonesia, Jakarta.
• Heilbroner R.L Tokoh-tokoh Besar Pemikir Ekonomi, (diterjemahkan oleh
Buntaran), Jakarta U.I.
• Nuriamsyah Hasibuan, 1987. Sejarah Pemikiran Ekonomi, Karunika, Jakarta