Why is mercatilism bad?

Answer 1

Mercantilism is often criticized because it prioritizes national economic interests over free trade, leading to trade restrictions and tariffs that can stifle competition and innovation. This system can result in inefficiencies, as resources are allocated based on government policies rather than market demands. Additionally, it fosters colonial exploitation and economic inequality, as countries seek to accumulate wealth at the expense of others. Ultimately, mercantilism can hinder global economic growth and cooperation.