Capitalism Vs. Mercantilism

There is a difference between capitalism and mercantilism. Capitalism is where competition occurs in the marketplace over the production and trading of goods and services. Mercantilism occurs in the political arena over who gets political favors. Eminent domaining people's property is not capitalism, even if the confiscated land is then given to a business concern. That is mercantilism. For two excellent examples of mercantilist activity see this USA Today article: Chinese peasants feel bullied over land grabs; and this Institute for Justice video: Inner-City Kids, Boxing Gym Fight Back.