Colbert Vs Adam Smith Analysis

Colbert vs. Adam Smith

Jean-Baptiste Colbert and Adam Smith were both known for striving towards one main goal which they had in common, increasing the economic prosperity of their nation. Both their countries were not well off and they each felt they had what it took to make a difference for the better. Even though these men lived in different lives and had never met each other, they both had an extreme impact on their countries economic ideology and system, and these ideas are still being applied to the world today. During their lifetimes, mercantilism was ruling the world. Mercantilism was a policy that dominated Western Europe from the 16th to 18th centuries. It was an economic policy under which nations sought to increase their wealth

To achieve this, he wanted to make France self-sufficient when talking economic terms and wanted a favorable balance of trade to get a kickstart with the economy of France and get it started towards the right track. He felt the best way to succeed at this, was simply classical mercantilism. He wanted strong government control over foreign trade and thought this will help secure the security and prosperity of the state. With the foreign trade, came control of the seas. Colbert was not only the minister but was in charge of the French navy. When it comes to controlling of the seas, Colbert said, "It goes to that nation whose maritime trade relations are elaborate enough to provide a sufficiently large reservoir of sailors from whose numbers a sea force may be formed."(Colbert 5). This naval control weighs heavy with the "jealousy" of the English at the time who were very dominant in the world. He said the English are also seeking to strengthen their trade but the only way that is possible is, "...If England discovers some hitherto unknown trading arenas or by reducing the number

He is considered to be "one of the most influential thinkers of the Enlightenment."(Smith 1). In the Wealth of Nations, he shares his opposing views on mercantilism and the importance of the "invisible hand" of competition and how it is a guide to an economic system based on individual self-interest, which is what he is all about. He ultimately believed in a free-market economy that would be controlled by the "invisible hand" of supply and demand and did not rely on government influence whatsoever. He hated strict government control of monopolies and everything that came with mercantilism, unlike Colbert. He is most famous for his economic philosophy of natural liberty, which is better known today as capitalism. Through the capitalist theory, he stated that competition would increase quality and decrease prices without outside help. As the Industrial Revolution began, he argued that free market economies are more productive and beneficial to their societies. A free market can be explained as an economic system in which prices are determined by unrestricted competition between privately owned businesses. He was pro-individual power and wanted nothing to do with government power and control. One topic that should come to your mind when you hear the name Adam Smith is the division of labor. Smith says, "It is not from the benevolence of the butcher, the brewer, or the