As similar are the two may be in terms of wealth accumulation, both economic systems have several differences that significantly distinguish one from the other. Mercantilism was a popular economic system in Europe from the 6th to the 18th century. Capitalism is an economic system where the means of production are privately owned and centered on the generation of profit. Mercantilism was based on the state accumulating wealth and power by controlling the nation’s economy at the expense of another. In contrast, most forms of capitalism operate without government intervention. Capitalist economies are driven by profit generation as a means to sustain economic growth and prosperity. Mercantilism was focused on local consumption while wages
