4 - Neomercantilist Reactions in Europe and the United States

Summary

Neomercantilists rejected the liberal advocacy of free trade, urging instead strategic trade protectionism and other forms of government economic activism in order to promote state wealth and power. Their goals were similar to those of pre-Smithian mercantilist thinkers, but they defended their priorities in new ways by engaging critically with the ideas of classical economic liberals. This chapter describes the important role of Alexander Hamilton and Friedrich List in helping to pioneer neomercantilist thought as well as other less well-known thinkers from Europe and the United States who developed distinctive and influential versions of this perspective. Many of them were inspired by List but adapted his ideas in some interesting ways, including William Ashley, Mihail Manoilescu, Gustav Schmoller, and Sergei Witte. Another key figure, Henry Carey, was more inspired by Hamilton than List, but developed an important version of neomercantilist thought that was very distinctive from both of theirs. These thinkers highlight how neomercantilism in Europe and United States had more diverse content than the common textbook depiction suggests.