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
Protection, according to Carey, by furnishing a ready market for
agricultural products, would free agriculture from the burden of an
exorbitant cost of carriage to a distant place. This argument, which
List[604] merely threw out as a passing suggestion, continually recurs
with the American author. But, as Stuart Mill justly remarked,[605] if
America consents to such expenditure it affords a proof that she procures
by means of international exchange more manufactured goods than if she
manufactured them herself.
Another no less debatable point: The exportation of agricultural
products, says Carey, exhausts the soil, for the products being consumed
away from the spot where they are grown, the fertilizing agents which
they contain are not restored to the earth; a manufacturing population
in the immediate neighbourhood[606] would remedy this. But, as John
Stuart Mill again remarks,[607] and justly enough, it is not Free Trade
that forces America to export cereals. If she does so, it is because
exhaustion of soil appears to her an insignificant inconvenience compared
with the advantage gained by exportation.
Carey, finally, was one of the first to discover in Protection a means of
increasing wages. Once the complex economic State is established there
arises a keen competition between the _entrepreneurs_ who require the
service of labour—a competition which naturally benefits the workman. But
this advantage, granting that it does exist, is more than counterbalanced
by the increased price of goods.
We see that Carey, although sharing the fundamental conceptions of List,
employs arguments that are much less valid. Both in power of exposition
and in the scientific value of his work, the German author shows himself
vastly superior to his American successor. He is also much more moderate.
Carey is not content with industrial Protection; he demands agricultural
Protection as well, and the duties, though a little higher than those
proposed by List, seem hardly sufficient for him.
Despite all this similarity of views, Carey does not owe his inspiration
to List. He was acquainted with the _National System_ and he quoted it.
But American economic literature had already supplied him with analogous
suggestions. Even more than books, the economic life of America itself
as it evolved before his very eyes had contributed to the formation of
his ideas. It was the progress of America under a Protective _régime_,
it was the spectacle of a country as yet entirely new and sparsely
populated, increasing the produce of her soil as colonisation extended,
and multiplying her wealth as population became more dense, that inspired
him with the idea of a policy of isolation with a view to hastening the
utilisation of those enormous resources. More fortunate than List, he saw
his ideas accepted, if not by the scientific experts of his country (who
on the whole remained aloof), at least by the American politician, who
has applied his principles rather freely.[608]
Public-domain text, read in full here on John Shaqi.
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