The Super Summary of World History - Alan Dale Daniel [169]
5. Mercantilism: an economic theory developed in the 1600s stressing the importance of international trade to acquire gold or silver; hence, shoring up a nation’s currency and economy. The ideal economy required importing raw materials at low prices and exporting finished goods at high prices, thereby attracting money (read, precious metals) into that nation’s economy. By maintaining a favorable balance of trade (exporting far more than importing), a nation would remain economically strong. Huge theoretical problems surfaced in the 1750s, because the Mercantilist theory assumed a fixed amount of trade; thus, attaining more trade for your nation required taking it from others. Later economists argued the size and strength of a nation’s economy determined its “wealth” not the amount of gold in its vaults. Economists also determined the amount of international trade was not fixed; thus, killing mercantilism as a theory. However, the reader should note that many nations in 2010 still operate on a quasi mercantilist theory by stressing the development of heavy industry, and adopting policies that make exports more important than imports (in the 1930s many nations were doing the same). Japan and China are the key modern examples—although they would deny using this theory. Both China and Japan stress the development of heavy manufacturing for export, and the import of low cost raw materials for manufacturing purposes.
6. Fascism: is a political philosophy requiring individuals be subservient to the state, and controlling the state was a strong leader executing the desires of the people (Stalin took a shortcut, he just executed the people). Social justice is feigned by fascists, but it is not a central concern. It is highly nationalistic and glorifies war. This becomes an economic philosophy because heavy industry is subject to state control, and getting everyone to work is a major goal of this political ideology. The Fascist would not care about a bicycle shop, but they became very concerned about what the nation’s major industries were producing, and they would order the major industries to produce what was good for the expansionist Fascist state. Under the Italian form of fascism industries were organized by type, and a committee of government and industrial bosses ran each economic sector through these committees—although the government had the ultimate say. Modern corporatism is said to be a form of fascism. Germany was the premier Fascist state in the 1930s; however, Benito Mussolini had introduced fascism into Italy years before Hitler initiated it in Germany. It totally failed as an economic and political philosophy; however, it is not dead. Many nations actually practice fascism while calling it something else. Cuba under Castro is an example of a fascist state calling itself communist.
Note the key distinctions between capitalism and, as a group, socialism, communism, and Marxism: Every one of capitalisms’ competitors stress social and economic justice. These philosophies stress the harm capitalism brings to workers through exploitation, economic oppression, and misery. To gain “justice” property owners in non-capitalist systems are separated from their money and property by the state. As a necessity, the three counter-capitalist philosophies emphasize the group is superior to the individual, otherwise the government cannot justify seizure of the capitalist’s property. Somehow, they think that once