Thomas Mun facts for kids

Sir Thomas Mun (June 17, 1571 – July 21, 1641) was an important English writer. He focused on how countries make and manage money. Many people see him as one of the last thinkers of an early economic idea called mercantilism.

Thomas Mun was also a director for the famous East India Company. This company was a big trading business. Because he believed strongly in his country's economy and had a lot of experience as a merchant, Mun played a key role during a tough economic time that started in 1620. He wrote a book called A Discourse of Trade from England unto the East-Indies to help the East India Company and to make England's economy strong again.

Mun's main idea was based on mercantilism. He suggested ways to make a country rich. His biggest point was that a country should always sell more goods to other countries than it buys from them. This is called having a positive balance of trade. If England did this, its wealth would grow steadily. Thomas Mun is still seen as a very smart thinker. He is a big part of understanding the history of economic ideas.

Thomas Mun's Early Life and Work

Thomas Mun was born in London in June 1571. He was the third child in a well-known London family. His father and stepfather both worked as mercers, selling fine fabrics. His grandfather, also named John Mun, worked at the Royal Mint. This was where England made its coins.

Because of his family, Thomas likely learned a lot about money and the economy from a young age. When he was 41, Thomas married Ursula Malcott. They had three children: John, Ann, and Mary. They lived in the area of St Helen Bishopsgate.

We don't know much about his schooling. But Thomas started his own career as a merchant around 1596. He was part of the Mercers' company. He traded goods in the Mediterranean region, especially with Italy and the Middle East. He was very good at his job and earned a lot of money.

In 1615, because he was so successful, Mun was chosen to be a director of the East India Company. In 1622, he joined a special group that advised on trade. For the rest of his career, he worked hard to support and promote the East India Company.

Working for the East India Company

The East India Company was a powerful trading company. It worked with the British Crown to explore new lands and trade with countries in the East. In 1615, Mun became a director. His goal was to make sure the company worked as well as possible. This meant making as much money as they could and selling more goods abroad.

In 1620, a big economic problem, called a depression, began. Mun's role in the economy became much more important. He had to defend the East India Company. He also had to help the government fix the country's money problems.

The trade crisis that caused the depression came from two main issues. First, England was buying many more goods from India through the East India Company than it was selling to India. This meant England was sending out more money than it was bringing in. This is called a negative balance of trade, or a trade deficit. According to mercantilism, this was bad for the economy.

Second, to pay for all these imports, England sent valuable metals like silver to India. In the 1600s, these metals were the main way to show wealth. Paper money wasn't used much in Northern Europe yet. So, sending precious metals out of the country was usually not allowed. However, the East India Company had special permission to export these metals.

Because of this, many people were upset with the East India Company. They thought sending silver away for luxury goods was a big reason for the economic downturn. Thomas Mun was chosen to speak for the company. His job was to clear its name. He also had to convince people that the company's actions were actually good for England. He shared his ideas in his first book, A Discourse of Trade from England Unto the East Indies.

Thomas Mun's Economic Ideas

Thomas Mun believed that foreign trade was the best way to make a country rich. His main point was simple: a country must sell more goods to other countries than it buys from them. All other economic ideas were less important.

As he wrote in his book England's Treasure by Foreign Trade: "We must sell more to strangers yearly than we consume of theirs in value." To achieve this positive balance of trade, Mun suggested several rules for England to follow:

• Limit Imports: Do not buy goods from other countries if England can make them itself.
• Encourage Local Goods: Reduce the buying of luxury goods from other countries. Instead, encourage English people to like and buy English products.
• Lower Export Taxes: Make it cheaper to sell goods made in England to foreign markets by reducing taxes on them.
• Charge More for Unique Goods: If England makes something that no other country can offer, it should charge more money for it.
• Grow More at Home: Use empty or unused land to grow more crops and make more products. This would mean England would not need to buy as much from other countries.
• Use English Ships: All goods should be transported using only English ships.

See also

In Spanish: Thomas Mun para niños

• Mercantilism
• East India Company
• Balance of trade
• Bullionism
• History of economic thought
• Privy Council of the United Kingdom

Literature

 This article incorporates text from a publication now in the public domain:  "Mun, Thomas". Dictionary of National Biography. (1885–1900). London: Smith, Elder & Co.