What ideas did Adam Smith have that contradicted mercantile policies?

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2026-03-21 11:00

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Adam Smith challenged mercantile policies by advocating for free trade and the idea that wealth is generated through production rather than accumulation of gold and silver. He argued that markets operate more efficiently when individuals pursue their self-interest, leading to mutual benefits through competition. Smith emphasized the importance of specialization and the division of labor, suggesting that economic growth is best achieved when barriers to trade are minimized, contradicting the mercantilist focus on state control and protectionism.

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