William D.

Grampp in his article “The Liberal Elements in English Mercantilism";

begins by putting certain questions on the table, regarding the economic dogma of
mercantilism, in this way, he argues that this topic has been the target of criticism and
mockery by his proposals, however, these are unfounded, and therefore, mostly wrong. For
this reason, it is vital to try to describe the true objective that this economic school has,
knowing that, it is recognized as a preliminary to the construction of the liberal economy and
the intervention of the state in the economy.
The first part of the text refers to the central objective of mercantilism, full
employment, linked to the search for nationalism that guarantees national benefits. This great
objective unites both classics and mercantilists, but separates them again in the way they
execute their policies. Mercantilism, trying to obtain general benefits, chooses to propose
certain conditions to obtain a prosperous economy such as: an adequate internal expenditure
or the already mentioned full employment in the workers, which, in turn, depends on the
interest of the people to increase their wealth. This last condition mentioned becomes the
mercantilist pillar, thanks to the fact that this was an indicator of both individual and common
welfare. Under these premises, the author is in charge of citing several authors such as Petty,
Cary or Tucker who are defenders of this economic school, making it seem that they have
the absolute truth.
Likewise, as the arguments as to why the need to opt for a mercantilist economy was
increasingly developed, authors appeared who did not agree with the proposals, as is the case
of an anonymous person who pretends to imply the need to try to employ the whole
population, he thinks that by leaving free trade each individual in his own way could present
benefits for the kingdom, going against the mercantile thought. However, Grampp continues
to insist on the incomprehension of economists towards mercantilists, because, the others see
as a mercantilist objective the search for a positive trade balance, which can be confusing for
trying to find exports greater than imports guaranteeing more employment.
However, to show mercantilism as the basis on which economic decisions should be
taken, seems a little hasty without thinking about the possible consequences that this type of
action could entail, it is imminent that the search for the general welfare of the population
would be something ideal, but in the same way it becomes a utopia, taking into account that
the theory of an unemployment rate, equal or close to 0 percent, can lead to very high rates
of inflation, in favor of job growth, but that in turn would decrease wages as the labor force
of society increases, and added to this, that there will always be people who do not intend to
work.
In conclusion, it becomes clear that neither of these extremes can be the decision we
choose in this world, since there is no possibility of the market regulating itself, but full
employment would also have great complications, so it is probably best to try to determine
the possibility of a balance between a market regulated by a competent entity, and a low
unemployment rate but not to the point that inflation rates go up, making the acquisition of
goods more expensive for employees, who could become savers due to the possible greater
capital hoarding. In this way, we are trying to strengthen the internal market, with which an
alternative for a more prosperous economy will begin to develop.
Iván Gil-Farid Osorio-Diego Soto