"The mercantilism vs. capitalism debate Adam Smith was entering into wasn't really about internal economic organization anyway, it was about international trade

"The mercantilism vs. capitalism debate Adam Smith was entering into wasn't really about internal economic organization anyway, it was about international trade and economic competition. The old mercantilist idea was that economic competition was a zero sum game, and that above all else the government should try to maintain a favorable balance of trade (export more than you import). Adam Smith's basic argument was that both sides benefit from trade." +1 to this, this is a better description of 'Mercantilism'.