How are capitalism and mercantilism the same?

Answer 1

Capitalism and mercantilism both emphasize the importance of trade and economic activity for wealth creation. They share a focus on market dynamics, where the accumulation of capital and resources drives economic growth. Additionally, both systems involve government intervention to some extent, with mercantilism advocating for strong state control over trade to maximize national wealth, while capitalism allows for greater individual enterprise but still recognizes the role of regulation. Ultimately, both systems seek to enhance a nation's economic power through trade and commerce.