What's the relationship between mercantilism and command economy?

Question

is mercantilism a policy that command economy government uses? or?.....
I'm so confused..= =

Answer 1

I think its mostly covered but there is another point to make. Merchantilsm is also about political payolla. Industries that support a particular party may be rewarded for their support by protective tariffs special tax breaks ect. Government spending on particular projects that benefit that particular industry.

Linclon is famous for getting the ball rolling on this by setting up protective tariffs for the steel industry and spending government money on the building of railroads (using up the steel). Just look at the Union generals which became railroad executives after the civil war.

Just look at the steel tariffs of just a few years ago. And the continuing tariffs on imported sugar.

Answer 2

Avoiding a long answer ... They are not the same thing.

A command economy is mostly "planned" - like the Soviet Union - there are no markets or there is one large state market to the outside world.

Mercantilism exists along side the free markets as a policy tool of government, usually through tariffs and other discouragements to imports. They believed that there is a finite amount of resources available so he who exports the most will "win". We now see it as more complex than this.

Answer 3

mercantilism has nothing to do with command economy. pay attention and youiwould know this