This economic theory, dominant in Europe from the 16th to the 18th centuries, advocated that a nation’s wealth was best measured by its accumulation of precious metals like gold and silver. Governments implemented policies designed to maximize exports and minimize imports, often through the use of tariffs and subsidies. A notable example is the British Navigation Acts, which restricted colonial trade to benefit the mother country.
The system promoted state intervention in the economy to ensure a favorable balance of trade. Its adoption fostered economic growth within European nations, enabling them to finance larger armies and navies, and to expand their colonial empires. Furthermore, it shaped relationships between colonizing powers and their colonies, often leading to the exploitation of resources and labor in the colonies for the benefit of the imperial center. This created inherent inequalities that fueled resentment and ultimately contributed to revolutionary movements.
