Mar-a-Lago Accord trying achieve conflicting ideas of lowering the value of the dollar and keeping it as the reserve currency of the world. When the US puts tariff on some countries (or all countries) they are not expected to retaliate by slapping tariffs on US goods.
Some AI generated notes . . . .
Mercantilism was a dominant economic system in Western Europe from the 16th to the 18th centuries, characterized by a focus on national wealth accumulation through maximizing exports and minimizing imports, often at the expense of other nations.
Here's a more detailed breakdown of mercantilism:
Key Principles:
National Wealth as Finite:
Mercantilists believed that a nation's wealth was limited and that one nation's gain was necessarily another's loss.
Favorable Balance of Trade:
The primary goal was to achieve a surplus of exports over imports, accumulating wealth in the form of precious metals like gold and silver.
Government Intervention:
Mercantilist policies involved significant government regulation of trade and industry to promote exports and restrict imports.
Protectionism:
Mercantilism favored protectionist measures like tariffs and quotas to shield domestic industries from foreign competition.
Colonialism:
Mercantilist policies often involved establishing colonies to provide raw materials and serve as exclusive markets for the mother country's manufactured goods.
Emphasis on Bullion:
Mercantilists viewed gold and silver as the primary indicators of a nation's wealth, leading to policies aimed at accumulating these precious metals.
Economic Nationalism:
Mercantilism is considered a form of economic nationalism, as it prioritized national interests and wealth over international cooperation.
Historical Context:
Rise of Nation-States:
Mercantilism emerged alongside the rise of powerful nation-states in Europe, as governments sought to strengthen their economies and military power.
Age of Exploration and Colonialism:
Mercantilism played a crucial role in the Age of Exploration and the establishment of European colonial empires, as nations competed for resources and markets.
Decline of Mercantilism:
Mercantilism gradually declined in the 18th century as thinkers like Adam Smith critiqued its limitations and promoted free trade and laissez-faire economics.
Examples of Mercantilist Policies:
Navigation Acts (England):
These laws restricted colonial trade to English ships and required certain goods to be shipped to England first, promoting English shipping and industry.
Colonial Restrictions:
European powers often imposed restrictions on their colonies to ensure that they served as sources of raw materials and markets for the mother country.
Tariffs and Quotas:
Mercantilist governments used tariffs and quotas to protect domestic industries from foreign competition.