Income=Expenditures
You can't get richer by being self-sufficient.
If you improved innovation and have less and less people in the farm when there are better tools in use for the farms.
Source of wealth int he commerce revolution was production!
Mercantilism Source of Wealth
- Gold in the treasury
- How much wealth the King had
- Positive balance of trade
David Hume (Philosopher) "Economics is not a social concept, it is a stand alone topic. He also said that it was the productivity of agriculture to gain productivity. He said it was commerce."
Merchants had their idea but it is not correct.
Trade is a zero-sum and wealth was fixed for winners and lowers. The money is wealth and the king should control trade. The king is suppose to make trade positive to get gold in but not allowed to leave England. There was no free trade. There was a restriction of ports. They wanted to promote their exports to other countries.
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