The Unfinished Programme of DemocracyRoberts, Richard
Philosophy
The Unfinished Programme of Democracy
Roberts, Richard
Democracy; Social history
Nor is it for their foreign adventures alone that these particular
interests will work up national pride and prejudice. They look upon the
home market with the same avid eye as the foreign; and it is an affair
of common knowledge that they have not hesitated to inflame national
feeling in order to secure invidious protective tariffs against other
nations. “Keep out the foreigner” is always an effective battlecry; it
bears a certain immediate and obvious plausibility to the untutored and
uncritical mind. The argument for free trade labours under the
disadvantage of not possessing this kind of effective simplicity. Except
in cases where free trade has been tried and is supported by experience,
the argument for it has to lean upon postulates which are not so easily
demonstrable to the crowd and which do not lend themselves to glib
catchwords such as the protectionists delight in. It is easy for
instance, to show that the prosperity of a particular industry depends
upon its security against a foreign competition which apparently starts
with the superior advantage of cheap labour; and a case may be fairly
made for the protection of a young and struggling industry from unequal
competition. The protectionist, however, extends his argument to cover
all industry; his concern is not for the growth of a struggling industry
but for a monopoly of the home markets—what time he is also actively
invading foreign markets. The free trader has in reply to show that a
protective tariff is a stranglehold upon all industry. Because, for
instance, it renders the capitalist producer immune from foreign
competition, it reduces the necessity on his part to improve methods of
production; and in so much as his care is for his profits rather than
the real development of industry for the good of the social whole, he
will tend to remain content with obsolete and antiquated methods of
production so long as improvement is not essential to the maintenance of
profits. Moreover, it works in the direction of compelling the
industries of the nation to utilise the raw materials available within
its own borders even though these be inferior in quality to those
obtainable elsewhere, with the result that the national industries are
seriously handicapped in competition in foreign markets, even in some
cases in the home markets. The problem of clothing oneself in the United
States of America is a sufficient illustration of the fantastic illusion
that a protective tariff makes for the common good. The tariff on
woollen goods may be useful to the owners of the woollen industries in
America; but the advantage is gained at the expense of the whole people,
including the very operatives in woollen mills.
Public-domain text, read in full here on John Shaqi.
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