The Forgotten Man, and Other EssaysSumner, William Graham
Science
The Forgotten Man, and Other Essays
Sumner, William Graham
Economics; Social sciences
Our intercourse with foreign nations, however, has been interfered
with, because it is a fact that, by such interference, some of us can
win advantages over others. The power of Congress to levy taxes is
employed to lay duties on imports, not in order to secure a revenue
from imports, but to prevent imports--in which case, of course, no
revenue will be obtained. The effect which is aimed at, and which is
attained by this device, is that the American consumer, when he wants
to satisfy his needs, has to go to an American producer of the thing
he wants, and has to give to him a price for the product which is
greater than that which some foreigner would have charged. The object
of this device, as stated on the best protectionist authority, is: “To
effect the diversion of a part of the labor and capital of the people
out of the channels in which it would run otherwise, into channels
favored or created by law.” This description is strictly correct, and
from it the reader will see that protection has nothing to do with any
foreigner whatever. It is purely a question of domestic policy. It
is only a question whether we shall, by taxing each other, drive the
industry of this country into an arbitrary and artificial development,
or whether we shall allow one another to employ each his capital and
labor in his own way. Note that there is for us all the same labor,
capital, soil, national character, climate, etc.,--that is, that all
the conditions of production remain unaltered. The only change which is
operated is a wrenching of labor and capital out of the lines on which
they would act under the impulse of individual enterprise, energy,
and interest, and their impulsion in another direction selected by
the legislator. Plainly, all the import duty can do is to close the
door, shutting the foreigner out and the Americans in. Then, when an
American needs iron, coal, copper, woolens, cottons, or anything else
in the shape of manufactured commodities, the operation begins. He has
to buy in a market which is either wholly or partially monopolized.
The whole object of shutting him in is to take advantage of this
situation to make him give more of his products for a given amount of
the protected articles, than he need have given for the same things
in the world’s market. Under this system a part of our product is
diverted from the satisfaction of our needs, and is spent to hire some
of our fellow-citizens to go out of an employment which would pay
under the world’s competition, into one which will not pay under the
world’s competition. We, therefore, do with less clothes, furniture,
tools, crockery, glassware, bed and table linen, books, etc., and the
satisfaction we have for this sacrifice is knowing that some of our
neighbors are carrying on business which according to their statement
does not pay, and that we are paying their losses and hiring them to
keep on.
Public-domain text, read in full here on John Shaqi.
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