Population Growth in View

of Mercantilism and
Related Theories

By: Mehak, Wardah, Rabail, Ramsha, Saadia

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 What Is Mercantilism?
 Mercantilism was an economic system of trade that
remained in force from 16th century to the
18th century. :
• Thomas Mun (1571-1641) was the creator of Mercantilist System
whereas Gerard de Malynes (1586–1623) · Edward Misselden 
(1608–1634) · Jean Baptiste Colbert (1661-1683) · James Philipp
Wilhelm von Hornick (1640-1712) were the main contributant to
Mercantilism. The term Mercantilism was first used by Economist
Adam Smith
• It was based on the principle that the world's wealth was static in
terms precious metals that primarily were acquired from Mining.
• Many nations attempted to have a positive balance of trade by
maximizing their exports and limiting their imports.
• Formulating policies to restrict Imports
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By: Mehak, Wardah, Rabail, Ramsha, Saadia
 Key Believes of Mercantilism

 Static Nature of Global Wealth

 Gold Reserves viewed as a barometer for calculating
national wealth
 Maintaining a Trade Surplus
 Population
 Colonies to Support Wealth
 Protectionism

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By: Mehak, Wardah, Rabail, Ramsha, Saadia
Population Theories

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By: Mehak, Wardah, Rabail, Ramsha, Saadia
Mercantilist view of Population
Mercantilists were populationists for Economic and
Political reasons:

Economic Reasons:
• One the Economic Side, Increase in Population is
required for availability of skilled / unskilled labour.
 With demand and supply rule of Economics, large

population means the availability of labour at

affordable rates.
 Cheap labour also results in low cost of production

thus making the exports competitive

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By: Mehak, Wardah, Rabail, Ramsha, Saadia
Mercantilist view of Population
Political Reasons:
• Increased Need of Human Resource for Colonization
 Procurement of Raw Material

 Market for Selling Finished Goods

 Aggressive Taxation

• Increased Population can support the Military needs of

the Country
• Large Population means more Taxes

By: Mehak, Wardah, Rabail, Ramsha, 6

Saadia
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By: Mehak, Wardah, Rabail, Ramsha, Saadia
Measures adapted for Population
Increase
Mercantilist views on population are largely based on the
theory of the French Finance Minister Jean Baptiste Colbert
and following plan was adapted by French Govt:
 Placing restriction on Celibates
 Promoting Marriage
 Encouraging Fertility
 Regulating Illegitimate Births
 Encouraging Immigration and Discouraging Emigration
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By: Mehak, Wardah, Rabail, Ramsha, Saadia
 Theories of Niccolo Machiavelli
and Giovanni Botero
 Among the early mercantile writers the most important are
Niccolo Machiavelli (1469-1527) and Giovanni Botero
(1540-1617). Machiavelli was perhaps the first to view
population from the modern angle, by observing that
excessive population would diminish through want and
disease.
 Population acts as a bell shape curve.
 Growth should be reciprocal to the means of subsistence
 Growth should also be check vis a vis:
• sterility of the soil,
• climate conditions,
• disease and epidemics. 9
By: Mehak, Wardah, Rabail, Ramsha, Saadia
 Quesney view on Population
Growth
 The physiocratic school of economic thought, evolved in
France about the middle of the eighteenth century and was
reaction against the mercantilist ideas and politics.
 Quesney (1694-1774), was the founder of the physiocratic
school
• Large population was desirable only if it could be made
comfortable
• Agricultural activities must encouraged because the
population would have to be fed.
• Mirabeau (1715-1789), another French economic thinker
concurred to this idea.
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By: Mehak, Wardah, Rabail, Ramsha, Saadia
 Biblography
 https://www.britannica.com/topic/mercantilism
 https://www.investopedia.com/terms/m/mercantilism.asp
 https://www.preservearticles.com/education/what-is-the-the
ory-of-population-according-to-the-mercantilism/15955
 https://journals.library.ualberta.ca/csp/index.php/csp/article/
download/21300/16104/52210
 https://studylib.net/doc/5217730/population-theories

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By: Mehak, Wardah, Rabail, Ramsha, Saadia