The Relevancy of Mercantilism in Political Economy Nowadays

Political and economic system of mercantilism be highly involved in international trade which aims to increase the assets and capital of a nation. Prosperity of a country is measured by the ratio of export-import of capital by the amount of metals, precious minerals, and others. Mercantilism see that the state should increase exports and reduce imports.

Here, we will talk about the relevance of mercantilism with the current economic. In the economic field, especially in Indonesia, the rising prices of basic needs or goods is often happens. Supposedly, this price increase should make the producers to increase production or import goods from abroad.

However, the logic of mercantilism still happens, in which mercantilism always sees that local products are always competing with foreign products. Thus, import is bad. As a result of this view, then import foodstuffs such as soybeans, potatoes, and carrots are considered not profitable for state. In fact, importing goods actually reasonable for consumption needs, especially for developing country like Indonesia. In the end, if imports remain restricted, the scarcity of local resources may occur and the result is price increases. In fact, its hard for Indonesia, a country with huge population, to just rely on their own resources.

State intervention of food and economy , should be aiming for increasing food production and goods. State must be smart in consumption process and organize public demand as well. It can be an advantage for the country itself and for the prosperity of the people.

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