The drawing of the model isn't very beautiful but it shows the major players in a Mercantile economy that Thomas Mun discusses in great detail. The main feature is that government (provided by the King and his Army) was required to keep business safe and secure. So anywhere business was performed, the King's Army would be there protecting business men. To do that, required money. How the king got his money was he taxed every transaction in the economy including:
What everyone got back from government was a service (which changes meaning over time depending on the current model of the economy).
- People for their labor to business or the army
- Banks for their services they supplied
- Businesses and their products
- Products and their sale
- People for using the bank
- Businesses for the exchange of products
- Service of providing the army
What everyone got back from government was a service (which changes meaning over time depending on the current model of the economy).
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