Reaction Paper on How Mercantilism was Implemented in the Past

The whole world in the past followed a system called mercantilism. With the knowledge of our natural resources being
limited, people in the past thought that it would be a good idea if they amass huge chunks wealth from other countries.
Competition between empires and colonial countries arose in the 18 th century and played on the implementation of tariffs and
labor restrictions to control the trade.

Mercantilism is a system which revolves around the notion of economic nationalism. It prioritizes the states’ power to
control the flow of goods and services in the markets using tariffs and labor restrictions. This also promoted the idea of
protectionism which is implemented to boost the economy of the mother country by maximizing the exports and minimizing the
imports coming from another country. The system heavily benefitted the mother countries of the colonists, they gained a lot from
their colonized territories because they could easily get natural resources. It helps the mother country safeguard its own industries
and encourage growth within its borders for it can boost local businesses and jobs by shielding them from competition from other
countries. This not only strengthens the country's economy but also enhances its security and self-reliance by ensuring a stable
supply of essential goods, reduce its dependence on goods from other foreign nations. Overall, protective measures can contribute
to the development and resilience of a nation's economy.

To exemplify how the system of mercantilism works, we can look at how colonial America and Great Britain interacted
in the past. Before colonists were prohibited from competing with the manufacturers of their domestic country. With laws such as
the Navigations Acts of 1651 and Molasses Act of 1733, American trade was taxed and restricted. These negatively affected the
relationship between the colonies and the mother country for it included limitations on economic freedom for colonies to grow
and develop because they were exploited for the benefit of the mother country alone. There were also trade imbalances which
hindered economic efficiency due to economic policies being focused on exporting more than importing. Corruption also became
more prevalent as the colonists looked for ways to evade the unjust regulations imposed on them through widespread smuggling.
It also kindled resentment among colonized peoples which led to the American Revolution in 1776.

In my perspective, the system of mercantilism is parasitic in nature. The colonies being the host and the mother country
being the parasitic organism. The wealth of the domestic nation came from exploiting the natural resources and trafficking people
from the colonies. Humans were treated as animals as they were used as slaves and their homeland wasted away as the colonizers
extracted everything that glimmered in their eyes. It was a system that capitalized on the weakness and innocence of one’s fellow
but was empowered by hunger and fear of running out for all of it started with people believing that the fruit of the land is finite.
However, this fear and hunger does not justify causing even worst terror and starvation on other people by depriving them of their
economic and political freedom. For all were equally born on top of the soil, and all will certainly be buried under it with nothing
but their soul.

Divine Grace P. Galpo TCW 0005-10