770 B
770 B
Commercial System Principles
Definition
The mercantilist framework of economic thought that prioritizes the accumulation of precious metals through trade surpluses, government intervention in commerce, and the use of tariffs, bounties, and monopolies to direct economic activity toward national enrichment.
Source Chapter
Book IV, Chapter 3
Context
Smith critiques this system throughout the chapter, showing how its principles lead to unreasonable trade restrictions and mutual hostility between nations, while failing to achieve their stated objectives of national wealth accumulation.
Economic Domain
General Theory