Economic Ideas Of Adam Smith And Jean-Baptiste Colbert

Both Jean-Baptiste Colbert (1619-1683) and Adam Smith (1723-1790) sought to increase

the wealth of their respective countries. How did their recommendations differ?

Adam Smith and Colbert both wanted to increase the wealth off their nation, but had

different economic ideas. Smith believes the "laissez- faire" idea that was based on

economic freedom, when Colbert believed in mercantilism that was based on restrictions

and control. However, both ideas were capitalistic and led to one result: improvement of

economy and wealth of the state.

Jean-Baptiste Colbert lived in the 15th century in France. All his life he served to his state

since his central principe was the wealth and economy of France. To keep France wealthy,

Colbert

Domestic tariffs were abolishes when foreign tariffs raised to encourage

people to by goods from mother country and developed France industries. Colbert created

guilds to check after the quality and quantity of goods poured. Also, in idea for a state to

be self sufficient it had to export more than it imported. Trade was a very important aspect

of mercantilism. Colonies were used to help the motherland. In Colbert's time the

government had full control on the economy. It was impossible to create an enterprise with

out the permission of the government, and since all the places were already taken, the

answer was most likely to be 'no'. Because there was not competition, the quality of

products wee not often good. This system worked well for France, but was very much

regulated by the government.

Adam Smith lived in 18th century. His ides of 'Laissez -Faire' was based on economic

freedom. He criticized guild and corporations because of their restrictions and privileged

companies because they didn't give companies full freedom and didn't let anyone on

market. He wanted a free competition that could protect costumes from high prices