A history of economic doctrines : $b from the time of the physiocrats to the present dayGide, Charles
History
A history of economic doctrines : $b from the time of the physiocrats to the present day
Gide, Charles
Economics -- History
But of all the productive forces of a nation none, according to List,
can equal manufactures, for manufactures develop the moral forces of a
nation to a superlative degree. “The spirit of striving for a steady
increase in mental and bodily acquirements, of emulation and of liberty,
characterise a State devoted to manufactures and commerce.… In a country
devoted to mere raw agriculture, dullness of mind, awkwardness of body,
obstinate adherence to old notions, customs, methods, and processes, want
of culture, of prosperity, and of liberty prevail.”[583] Manufactures
permit of a better utilisation of a country’s products than is the case
even with agriculture. Its water-power, its winds, its minerals, and its
fuel supplies are better husbanded. The presence of manufactures gives
a powerful impetus to agriculture, for the agriculturist profits even
more than the manufacturer, owing to the high rent, increased profits,
and better wages that follow upon an increased demand for agricultural
products. The very proximity of manufactures constitutes a kind of
permanent market for those agricultural products, a market which neither
war nor hostile tariffs can ever affect. It gives rise to varied demands
and allows of a variation of cultivation, which results in a regional
division of labour. This enables each district to develop along the most
advantageous line, whereas in a purely agricultural country each one
has to produce for his personal consumption, which means the absence of
division of labour and a consequent limitation of production.[584]
Industry for List is not what it was for Smith. For him it is a social
force, the creator of capital and of labour, and not the natural result
of labour and saving. It deserves introduction even at the expense
of a temporary loss, and its justification is that of all liberal
institutions, namely, the impetus given to future production. In a
beautiful comparison which would deserve a niche in a book of classical
economic quotations he writes as follows: “It is true that experience
teaches that the wind bears the seed from one region to another, and that
thus waste moorlands have been transformed into dense forests; but would
it on that account be wise policy for the forester to wait until the wind
in the course of ages effects this transformation?”[585] The tariff,
apparently, is the only method of raising the wind.
By placing himself at this point of view List is able to defeat the most
powerful arguments used by his opponents. All we can say in reply is that
manufactures will not produce these effects if they have not already a
_raison d’ètre_ in the natural evolution of a nation—that is, if they
do not demand too costly a sacrifice. The land on which the settler sows
his corn can scarcely be regarded as ready to receive it if it lacks the
power to make it grow.
Public-domain text, read in full here on John Shaqi.
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