Mercantilism has come back with a vengeance.  Albeit, it’s under the cover of a new name. The overlords might claim it’s to protect the consumer.  This doesn’t do that.  It protects a certain industry from competition.  All the while, you’re paying more for goods.  It harms the consumers.  This might go unnoticed if it was one company, but it’s many.  This is economy wide.  This makes it so you pay more for everything you buy.

Mercantilist policies were destroyed centuries ago.  It’s the same policies Adam Smith railed against.  It’s special privilege for some, and the consumers must pay for this privilege.  This special privilege comes to those favored by the state.  They are favored by the state because they have the biggest bribes.  It can be said that mercantilism reached its height prior to Smith, but the contemporary period is just as bad, or worse.

These harmful policies received widespread support these days.  Even by those who claim to favor small government.  It’s impossible to favor small government if you support these policies.  Since it makes everything you buy more expensive, it lowers your standard of living.  Mercantilism destroys civilization.  Favoring mercantilism is no different than favoring a cartel.  It favors a few at the expense of the many.

A free market frustrates mercantilism.  One could say, it frustrates cartels.  Without mercantilism, companies must provide you with the best possible goods.  The policies shield them from competition.  Now that’s out of the way, companies can charge you more for goods.  Since they don’t have any competitors producing the same good, the quality can be reduced.  Mercantilist policies don’t help you one iota.

The masses will begin to clamor about being unable to afford necessities.  Rather than address the culprit, more money will be printed.  This will just make the situation worse.  More money just means more money is chasing the same amount of goods.  Goods can’t be printed.  Printing money can’t raise the living standard, it’s impossible.  Mercantilism leads to de-civilization.  It’s time people recognize it even when it’s under a different name.

Reference

Murray Rothbard; Economic Controversies