Trade is complicated and protectionism is not always bad, but the idea that "money going out == bad" is a common misconception that underlay the "mercantilist"

Trade is complicated and protectionism is not always bad, but the idea that "money going out == bad" is a common misconception that underlay the "mercantilist" economic policies of the early modern era. Kings and parliaments were alarmed to see precious gold leaving their shores. Adam Smith set them straight: money and value are not the same thing. In fact, money is only valuable if you can use it to acquire something else of value! If you "give up" an amount of gold but receive valuable goods, which can be combined with other goods to create even more value, the national wealth can go up even with "precious gold" leaving town.