But Island C, from having hardly any income at all, has now an income
of £10,000,000 a year. Island A is ruined. Protection has put the
getting of the ore under unnatural conditions. It has compelled the
coal-owners to go much farther off for their ore than they need
have done under Free Trade. The total wealth of all three islands
altogether is less than it used to be by £4,000,000, for they are
adding £4,000,000 extra to the cost of getting the raw material. _But
the total combined wealth of B and C, even if they pay foreign ships
to bring the ore, is now greater than it used to be under the old
Free Trade._ No. B has £15,000,000; No. C has £10,000,000--the total
is £25,000,000. If they pay their own sailors to bring the ore it is
£30,000,000. Under the old conditions the total of B and C alone was
only £19,000,000. Island A is ruined and the total wealth of the whole
system is less, but the Protectionists of the realm, which now only
includes B and C, are quite indifferent to that. They are thinking of
the wealth of their common country, and are indifferent to the ruin of
others, and their policy is _increasing_ the wealth of their common
country at the expense of foreigners.
In that example lies the argument for Protection. _If Island C could
do something other than mine ore, if it had other forms of wealth,
or by ingenuity or luck could discover some new fields in which its
activities might develop, then the argument for Protection in this case
would break down._ Island B would say: “Let me get my iron ore cheap
from the foreigner in Island A, and do you, on Island C, develop (let
us say) dairy farming, or something else which I cannot do and which
Island B cannot do. In that way we shall all three benefit, and the
common realm, consisting of Island B and Island C, will be richer than
ever. Island B will have all its old profit of £19,000,000 (instead of
being reduced to £15,000,000), and Island C can well develop a dairy
produce of more than £7,000,000.”
One ought to be able to see quite clearly from an example like this
how true it is that _the argument in favour of Protection applies to
particular cases only, and turns entirely upon whether an undeveloped
part of the energies of the community can be turned into new channels
or not_.
We have an excellent, though small, example to hand in England to-day.
The English people have to send abroad about £4 worth of goods every
year per family for pig-meat, that is, bacon and hams and the rest.
There is no reason why they should do this. They could produce the
pigs on their own farms without drawing a single person from the
factories and keep this mass of manufactured goods for their own use.
The reason we are in this state in the matter of pig-meat is that our
agriculture has generally got into such a hole that people will not
bestir themselves to produce enough pigs. So here is a definite case in
point, and only experiment could show whether Protection would pay here
or would not pay.
Public-domain text, read in full here on John Shaqi.
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