Monday, July 9, 2012

Mercantilists are statists

Gary North on mercantilism:

The defenders of mercantilism have a religion: the religion of state worship. They do not believe that individuals acting in their own self-interest by trading with each other in order to benefit themselves are reliable sources of innovation, exploration, and creativity. They believe that the free market is an incomplete organization. They believe that there must be a sovereign judicial entity that provides guidance, by which they really mean coercion, in directing the flow of scarce economic resources. They believe that bureaucrats are trustworthy, that politicians act in the interest of the people. They believe that the state is a reliable source of economic wisdom, correct understanding of the future, correct understanding of the present, and is therefore the proper agency to equate supply with demand.