HoPE notes: June 4 II

Mercantilism goes into pysiocratism in France, and liberalism in England. 
In France, Colbert micromanages the national production, with a focus on competing on quality. A type of industrial policy. 
In England, Charles I executed by the state. Kings had been executed before, but not by the state. Monarchy here is constrained by parliament/government, where in France Louis XIV has more absolute power. 
[great podcast; revolutions]
1620s crisis in textile industry to the point people were starving. Shock to the industry by technological developments. A gov committee at the time diagnosed the problem as a shortage of currency. Misselden blamed the trade with the indies because England was importing from them, but they are not an exporting destination. Munn responded to this, noting that the good that were being imported were desired, and that it would be more expensive to buy from the Dutch who as a middleman would charge a higher price. 
WoN by AS (particular book 4) was an attack on mercantilism. E.g. he compares the Spanish to the Mongols, where if they went to a new place the Spanish would try to get bullion while the Mongols would look for oxes. Smith notes that the Mongols were closer to the truth of what was the source of the wealth of different nations. Ultimately, bullion creates inflation, as can be seen by the Spanish story who successfully practiced mercantilism for about a century and the spike in inflation that followed (and spread across Europe). Mercantilists didn't recognize the gains from trade. 
Two mercantilist literatures: pamphlets either from the business side, or from civil servants. In the former, there is a lot of puffery using nation interests and religious arguments that are use to justify policies that will be beneficial for their own business.