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
List’s method is essentially that of the pioneer. He was the first to
make systematic use of historical comparison as a means of demonstration
in political economy. Although he can lay no claim to be the founder of
the method, still the brilliant use which he made of it justifies us in
classifying him as the equal, if not the superior, of those who at the
same moment were attempting the creation of the Historical school and the
transformation of history into the essential organon of economic research.
List also introduced new and useful points of view into economics.
The principle of free exchange as formulated by Smith, and especially
by Ricardo and Say, was evidently too absolute and rested upon a
demonstration that was too abstract for the ordinary politician. If,
as List justly remarks, the practice of commercial nations has so long
remained contrary to a doctrine that all economists regard as admirable,
it is not without some just cause. As a matter of fact, can the statesman
ever place himself outside of the point of view of national interest of
which he is the custodian? It is not enough for him to know that the
interchange of products will in some degree increase wealth.[615] He
must be certain that this increased wealth will benefit his own nation.
He must be equally well assured that Free Trade will not result in too
sudden a displacement of population or industry, the social and political
results of which might be very harmful. In other words, political economy
must be subordinated to politics in general, and to-day there is no
single economist who does not recognise the impossibility of separating
them in practice.[616] There is none that does not perceive the influence
of political power on economic prosperity, and that consequently does not
recognise the necessity for the different complexion which the peculiar
circumstances of each country imposes upon the practical application of
the principle of commercial liberty.
This is not all. List by abandoning the favourite habit of
eighteenth-century writers who contrasted man and society, and by
giving us a picture of man as he really is, as a member of a nation,
has introduced a fruitful conception into economics of which we have
not yet seen the full results. He rightly treats of nations not merely
as moral and political associations created by history, but also as
economic associations. Just as a nation is politically strengthened by
the moral cohesion of its citizens, so its economic cohesion increases
the productive energy of each individual and enhances the prosperity of
the whole nation.
Public-domain text, read in full here on John Shaqi.
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