Europe between 1750 and 1850

Between the years of 1750-1850, the economic structure of a nation and the role that government played in a countries economy was under furious debate. One of the most utilized structures of the European nations was the practice of mercantilism. Mercantilism is a system of economic regulations designed to increase the power of the state. Mercantilism involves intense regulations and a watchful eye from the government in order to increase wealth to the government. Mercantilism is extreme governmental regulation within the nations economy. It involves increasing the amount gold and silver that the nation has in its reserves. One of the main strategies of a country that is practicing mercantilism, is to export more goods than it imports. Another strategy is to use the money that the nation has accumulated to build the infrastructure of the nation. By building the infrastructure of the nation the people become more loyal to the government and then in turn more nationalism is built up. This leads to a more productive economy and a more loyal people. In 1776 Adam Smith wrote the Wealth of Nations, he wanted as much economic freedom as possible. Instead of a governmental run monopoly, many people called for “free trade.” Instead of playing favorites, as the government did, free trade would allow a corporation to have a healthy amount of competition. Adam smith believed that the government should play absolutely no role in the economics of a nation. The theories and philosophies that were being conceived in Europe would eventually lead the Capitalist society that we live in today, here in America.