Europe's New Liberal Mercantilism

A Critique of the Dominant Economic Paradigm

In recent years, there has been a growing debate about the future of Europe's economic model. Some argue that Europe is moving towards a new form of mercantilism, characterized by protectionist policies and a focus on exports. Others argue that Europe is simply adapting to the changing global economy and that its policies are not fundamentally different from those of other developed countries.

Energy Union: Europe's New Liberal Mercantilism? (International Political Economy Series)

by Michael Bennet

4 out of 5

Language	:	English
File size	:	659 KB
Text-to-Speech	:	Enabled
Screen Reader	:	Supported
Enhanced typesetting	:	Enabled
Word Wise	:	Enabled
Print length	:	274 pages
Paperback	:	376 pages
Item Weight	:	2.16 pounds

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In this article, I will argue that Europe is indeed moving towards a new form of mercantilism. I will trace the historical roots of this new mercantilism and discuss its implications for the future of Europe. I will also argue that this new mercantilism is not a viable long-term strategy for Europe and that it will ultimately lead to economic stagnation and decline.

The Historical Roots of Europe's New Liberal Mercantilism

Mercantilism is an economic system that was dominant in Europe from the 16th to the 19th centuries. Mercantilist policies were designed to promote economic growth and power by increasing exports and reducing imports. Mercantilists believed that the best way to achieve these goals was through government intervention in the economy.

In the 20th century, mercantilism was largely discredited as an economic system. However, in recent years, there has been a revival of interest in mercantilist ideas. This is due in part to the rise of China as a global economic power. China's success has been attributed to its mercantilist policies, which have helped to create a large trade surplus and boost economic growth.

Europe's new liberal mercantilism is a hybrid of traditional mercantilist policies and neoliberal economic ideas. Neoliberalism is an economic philosophy that emphasizes free markets, limited government intervention, and globalization. Neoliberal policies have been dominant in Europe since the 1980s.

Europe's new liberal mercantilism combines neoliberal ideas about free trade and globalization with mercantilist policies designed to protect domestic industries and promote exports. This approach is reflected in the European Union's trade policy, which is based on the principle of "free trade with managed protection." This means that the EU supports free trade in general, but it is also willing to use protectionist measures to protect specific industries.

The Implications of Europe's New Liberal Mercantilism

Europe's new liberal mercantilism has a number of implications for the future of Europe. First, it is likely to lead to a more protectionist trade policy. This could damage the European economy by reducing exports and increasing prices for consumers.

Second, Europe's new liberal mercantilism could lead to a more interventionist government. This could stifle economic growth by reducing the efficiency of the market and increasing the cost of ng business.

Third, Europe's new liberal mercantilism could lead to a more divided Europe. Protectionist policies could create resentment among European countries that feel they are being unfairly treated. This could lead to political instability and even conflict.

A Critique of Europe's New Liberal Mercantilism

I believe that Europe's new liberal mercantilism is a misguided economic strategy. It is based on a flawed understanding of the global economy and it will ultimately lead to economic stagnation and decline.

First, Europe's new liberal mercantilism is based on the assumption that the global economy is a zero-sum game. This means that one country's gain is another country's loss. However, this assumption is not supported by the evidence. The global economy is a complex system in which all countries can benefit from trade.

Second, Europe's new liberal mercantilism is based on the assumption that protectionist policies can protect domestic industries. However, this assumption is also not supported by the evidence. Protectionist policies often lead to higher prices for consumers and lower quality products.

Third, Europe's new liberal mercantilism is based on the assumption that government intervention can improve the economy. However, this assumption is also not supported by the evidence. Government intervention often leads to inefficiency and corruption.

I believe that Europe's new liberal mercantilism is a dangerous economic strategy. It is based on a flawed understanding of the global economy and it will ultimately lead to economic stagnation and decline. Europe should instead adopt a more open and market-oriented economic model that is based on free trade and limited government intervention.

Energy Union: Europe's New Liberal Mercantilism? (International Political Economy Series)

by Michael Bennet

4 out of 5

Language	:	English
File size	:	659 KB
Text-to-Speech	:	Enabled
Screen Reader	:	Supported
Enhanced typesetting	:	Enabled
Word Wise	:	Enabled
Print length	:	274 pages
Paperback	:	376 pages
Item Weight	:	2.16 pounds

FREE