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# Political Economy Objectives

## Definition

The goals that governments and societies pursue in managing economic affairs, which under the mercantile system focused primarily on accumulating precious metals through favourable trade balances, rather than on promoting real production, efficient resource allocation, and general prosperity.

## Source Chapter

Book IV, Chapter 1

## Context

Smith introduces political economy as the field concerned with national wealth, and immediately contrasts the mercantile objective of metal accumulation with what he sees as the proper goals: maximizing productive capacity, ensuring efficient resource use, and promoting the real welfare of the population through economic freedom.

## Economic Domain

Regulation

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