Send us a text Smith closes Book IV by dismantling mercantilism through the lens of colonial policy, monopoly, and rent seeking, then weighs physiocracy against the system of natural liberty. We trace why colonies grew despite Europe, not because of it, and how “wealth as money” broke policy and fueled war. • mercantilism’s definition of wealth and the balance of trade myth • monopoly and bounties as tools for concentrated gains • chapter 7 on colonies as a case study in institutional design...
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Send us a text Smith closes Book IV by dismantling mercantilism through the lens of colonial policy, monopoly, and rent seeking, then weighs physiocracy against the system of natural liberty. We trace why colonies grew despite Europe, not because of it, and how “wealth as money” broke policy and fueled war. • mercantilism’s definition of wealth and the balance of trade myth • monopoly and bounties as tools for concentrated gains • chapter 7 on colonies as a case study in institutional design...
Send us a text The price system solves a profound coordination problem by communicating dispersed knowledge that no central planner could ever fully access or comprehend. We explore Hayek's insight about how prices serve as both information and incentives, allowing self-interested actions to inadvertently benefit society. • The "knowledge problem" – why information needed for economic decisions is dispersed among millions of individuals • Tale of two farmers – how profit-seeking Mo unknowing...
The Answer Is Transaction Costs
Send us a text Smith closes Book IV by dismantling mercantilism through the lens of colonial policy, monopoly, and rent seeking, then weighs physiocracy against the system of natural liberty. We trace why colonies grew despite Europe, not because of it, and how “wealth as money” broke policy and fueled war. • mercantilism’s definition of wealth and the balance of trade myth • monopoly and bounties as tools for concentrated gains • chapter 7 on colonies as a case study in institutional design...
