Marxism vs. Mercantilism

Attribute	Marxism	Mercantilism
Economic System	Communist	Mercantilist
Founder	Karl Marx	Various
Class Struggle	Central	Not emphasized
Role of Government	Minimal, withering away	Interventionist
Private Property	Abolished	Encouraged

Overview

Marxism and Mercantilism are two distinct economic and political ideologies that have had significant impacts on the development of societies throughout history. While Marxism is a socialist ideology that focuses on the redistribution of wealth and the elimination of class distinctions, Mercantilism is an economic theory that emphasizes the importance of accumulating wealth through trade and the establishment of colonies.

Key Principles

Marxism is based on the ideas of Karl Marx, who believed that capitalism would inevitably lead to the exploitation of the working class by the bourgeoisie. Marx advocated for the abolition of private property and the establishment of a classless society where the means of production are owned collectively. In contrast, Mercantilism emerged during the early modern period and was characterized by policies aimed at increasing a nation's wealth through trade surpluses, protectionist measures, and the acquisition of colonies.

Role of the State

In Marxism, the state plays a central role in overseeing the transition from capitalism to socialism. Marxists believe that the state should control the means of production and redistribute wealth to ensure equality among all members of society. On the other hand, Mercantilism places a strong emphasis on the role of the state in promoting economic growth and national power. Mercantilist policies often involve government intervention in the economy, such as tariffs, subsidies, and regulations, to protect domestic industries and promote exports.

Views on Trade

Marxism criticizes the capitalist system for exploiting workers and creating unequal trade relationships between nations. Marxists argue that free trade benefits the bourgeoisie at the expense of the working class, leading to the concentration of wealth in the hands of a few. In contrast, Mercantilism views trade as a zero-sum game where one nation's gain is another nation's loss. Mercantilists believe that a country should export more than it imports to accumulate wealth and power.

Impact on Society

Marxism has had a profound impact on the development of socialist and communist movements around the world. Marxist ideas have inspired revolutions, social movements, and political parties that seek to overthrow capitalist systems and establish socialist societies. In contrast, Mercantilism was prevalent during the early modern period and influenced the economic policies of European powers such as Spain, Portugal, and England. Mercantilist policies contributed to the growth of colonial empires and the expansion of global trade networks.

Legacy

While Marxism continues to influence political and economic debates in the modern world, Mercantilism has largely been replaced by more liberal economic theories such as capitalism and free trade. However, some elements of Mercantilism, such as protectionist measures and government intervention in the economy, can still be seen in certain countries today. Both Marxism and Mercantilism have left lasting legacies that have shaped the course of history and continue to influence the development of societies around the world.