TJP

Mercantilism was an economic system where powerful countries instituted laws to control foreign trade. In the 16^th throughout the 18^th centuries mercantilism was a leading cause of wars in Europe.

It appears that a new form of mercantilism is emerging in the 21^st century, where again powerful countries are attempting to control foreign trade for political and economic purposes. Thus, they implement laws to exclude certain countries from international trade.

Will neo-mercantilism in the 21^st century leads to frequent and costly wars today?

The Iranian response to U.S. economic sanctions is to threaten to block the Strait of Hormuz; a blockade would likely lead to war and higher crude oil prices.

However, any extended conflict in the Persian Gulf will result in higher crude oil prices and likely another U.S and worldwide recession.

Higher crude oil prices reduce consumers’ purchasing power, as well as demand for goods and services and employment, leading to wealth transfer from consumers to oil conglomerates and oil producing nations.

Apparently, wealthy politicians don’t get it; they’re oblivious to the deleterious effects of high crude oil prices on consumers and the economy.

Perhaps, because most Senate and House representatives are part of the 1 percent, they do not understand how diminishing purchasing power affects the limited budgets of the 99 percent.

Oil prices surged on Tuesday by more than four percent on Iranian threat to close the Strait of Hormuz. The U.S. response is that they will not allow the Iranians to close the Strait.

Some “military experts” argue, as they did prior to the Iraq invasion, that the adversary (Iran) weaponry is no match for the U.S. Unfortunately experts’ predictions of war outcomes in Iraq and Afghanistan have been inaccurate.

Recent history has shown that the invasion of Afghanistan and Iraq were difficult adventures, with high human and economic toll and no clear-cut winners. Moreover, weaponry advantage does not guaranteed victory. And, the invading nations (the coalitions) do not reap the spoils; in Iraq the advantaged nation appears to be Iran and in Afghanistan China.

Therefore, neo-mercantilism might not be advantageous to the West; it is more advantageous to invade with friendship and peace than with the sword and enmity.

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