The Reasons And Influence Of France’s Mercantilism Policies For Success

Late mercantilism no longer follow the early mercantilism’s points which is that a country should limited money to output, but it emphasis on the flow of money, the development of the trade, restrictions on foreign goods input and keeping "Trade Surplus" in the trade between countries.During the period of 16-18 century, whether in theory or in the political and economic aspects of the country, mercantilism had made great progress, so that it formed the trend of European mercantilism in Europe. Major European countries joined this trend and used administrative power to intervene economic development in their domestic. Holland and England took on this "Express" of mercantilism, one became the"overlord" in seventeenth Century, the other which closely followed by Holland became the second largest economy. Unwilling to subsequent, French also seized this opportunity to implement mercantilist policies in the country, and vigorously promoted the domestic industrial and commercial manufacturing and trade development. The implementation of mercantilist policies had allowed wealth to accumulate, laid the groundwork for France’s political, cultural and military prosperity and at the same time enhanced France’s comprehensive strength and international influence.Louis ⅩⅣ reign was the period when the French centralization rose to absolutism.Louis ⅩⅣ, which has the absolute right, could use all the resource of the country to support mercantilism economic development. Such as granted some privileges to industries 、 manufactures and overseas trading companies. In fact, France’s mercantilist policy is the embodiment of the absolute monarchical power in the economy.In addition, Louis ⅩⅣ appointed a political vision and economic minds of Colbert for the Minister of Finance, responsible for mercantilist policies implementation. Colbert was born in the business family, versed in "Business is the source of wealth" ; Colbert took care of family property for Mazarin so many years,accumulated a lot of financial experience. So as the French finance minister, Colbert hired businessmen as "Think tank"to listen to their opinions and suggestions. In terms of religious beliefs, Colbert was tolerant. As long as it contributed to the French economic development, Colbert didn’t focused on whether it is Protestant identity.After the development of mercantilism, the French comprehensive national strength to reach the peak, and Louis ⅩⅣ obtained "Sun King" title. However, in the later reign of Louis ⅩⅣ, he was militarism and the core figure Colbert died. Therefore, the wealth that accumulated through the French mercantilist policy gradually depleted. With theFrench fiscal deficit increased year by year, French brewing into a huge financial crisis eventually, and laid the seeds for the French Revolution.