How did early modern wars influence the rise of mercantilism?

Early modern wars influenced the rise of mercantilism by necessitating the accumulation of wealth for military funding and national security.

During the early modern period, wars were frequent and often protracted, requiring substantial financial resources to maintain armies, navies, and war machinery. This need for wealth led to the rise of mercantilism, an economic theory that advocated for the accumulation of wealth through trade surpluses and the establishment of colonies.

The mercantilist system was based on the belief that national power was directly linked to national wealth. Therefore, states sought to increase their wealth to enhance their military capabilities and ensure their security. This was achieved through the establishment of a favourable balance of trade, where exports exceeded imports, and the acquisition of colonies, which provided raw materials and markets for finished goods.

Wars also led to the rise of strong central governments that could effectively manage economies and direct resources towards military efforts. These governments implemented mercantilist policies, such as high tariffs on imports and subsidies for domestic industries, to promote economic self-sufficiency and reduce dependence on foreign goods. This was crucial during times of war when trade routes could be disrupted and access to foreign goods limited.

Furthermore, wars often resulted in territorial gains, which expanded the trading networks of victorious states. These new territories provided additional resources and markets, further enhancing the wealth and power of these states. This, in turn, reinforced the mercantilist belief in the importance of trade surpluses and colonial possessions.

In conclusion, early modern wars played a significant role in the rise of mercantilism. The need for wealth to fund wars and ensure national security led to the adoption of mercantilist policies that promoted trade surpluses and colonial expansion. These policies were implemented by strong central governments, which were also a product of war, and were reinforced by the territorial gains made during wars.