Comparing Two Ideas Of Mercantilism And Capitalism

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Economy in every country in Europe was what kept Europe going. Trade and production of goods was needed to fund the country and keep a balance of power within Europe. During the Enlightenment, two ideas emerged about how the economy should be run. These two ideas were capitalism and mercantilism. Capitalism, developed by Jean Baptiste Colbert, focused on government control while mercantilism, developed by Adam Smith, was in favor of free trade.

Capitalism was the method of economy where the government was highly involved. Jean Baptiste Colbert worked for Louis XIV, an absolute monarch in France, and played a major part in France's economy. Colbert believed that the government should run the economy and try not to be dependent on other countries