Back to the 19th century mercantilism
Until the 19th century, Trumpian-style mercantilism was widely regarded as sound economic policy. That changed after Adam Smith’s powerful refutation of mercantilism revolutionized economic thinking. When private sector producers compete with one another, Smith argued, an “invisible hand” generates benefits that none intend, resulting in the production of goods and services that constitute the true “wealth of nations.”»
By Anne O. Krueger (*)
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Anne Krueger is an American economist, World Bank Chief Economist from 1982 to 1986, and deputy managing director of the International Monetary Fund (IMF) from 2001 to 2006.