... the government oversaw the production, exchange, consumption of goods and services. To enforce mercantilism, the Navigation Acts were passed in Britain. These acts forced colonies to trade only with Britain. Mercantilism was very profitable for the government, and a few lucky citizens. It was however, detrimental to society. The common man profited least mercantilism because of the government's monopoly of trade and distribution. Lateral movement from the lower class to the middle class was also unlikely because the government seized all business opportunities. Mercantilist states favored issuing low wages, believing that this would discourage imports, and contribute to the export surplus. The gap between the rich and poor rose along with social unrest. The fundamental problem with mercantilism is in its belief that the real wealth of a nation is the size of its gold and silver treasuries. Increasing gold and silver hoards did provide short-term economic stimulus, however it was only ...

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