This country, at the beginning of the discussion a hundred years ago,
was already producing great quantities of manufactured goods: cloth
and machinery, ships and so on. It also produced on its fields the
wheat and meat and dairy produce with which it fed itself. But as the
population increased the amount of food being produced on the soil of
England, though getting larger in the total, got smaller in proportion
to the rapidly increasing population. Therefore there was a danger of
its getting dearer. The Free Traders said: “Let foreign food come in
free. If it is produced in climates where for the same amount of labour
you can get more wheat and more meat and more dairy produce then, of
course, many of our agricultural people will have to give up working
on the land. But they can take to manufacturing, and the total amount
of food which the English will get for so much labour on their part
will be greater. Where an agricultural labourer working an hour, for
instance, can get a pound’s weight of food, the same man working one
hour in a factory will get, say, by exchange of the manufacture against
foreign food, two pounds of food, if we allow all foreign food to come
in free.”
These Free Trade arguments look, when they are first studied, not
only simple and clear, but unanswerable, and indeed most educated
men--nearly all educated men--in Queen Victoria’s reign, thought they
_were_ unanswerable, and that Protectionists here at home (who were
no longer allowed to put their theories into laws) and Protectionists
abroad who had kept up tariffs against foreign trade, were simply
ignorant and foolish men who did not properly understand the elements
of Economic Science.
To see whether the Free Traders were right or wrong in these ideas, let
us next turn to the arguments with which the Protectionists met them.
These arguments were of two kinds:--
(_a_) There were Protectionists who said: “We cannot follow all these
elaborate abstract discussions about a science called Economics; we are
practical men with plenty of common sense and experience, and all we
know is that if the foreigner comes in free we shall be ruined. He can
sell his wheat at such a price that our farmers will lose on it. Our
labourers will leave the land, the rents paid to our landlords will
vanish. You will thus ruin English wealth altogether.”
Public-domain text, read in full here on John Shaqi.
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