Friedrich List
Born
in Reutlingen, Germany
August 06, 1789
Died
November 30, 1846
Influences
Alexander Hamilton, Daniel Raymond
...more
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“Robbers, thieves, smugglers, and cheats know their own local and personal circumstances and conditions extremely well, and pay the most active attention to their business; but it by no means follows therefrom, that society is in the best condition where such individuals are at least restrained in the exercised of their private industry.”
― National System of Political Economy
― National System of Political Economy
“Adam Smith's celebrated work is entitled "The Nature and Causes of the Wealth of Nations." The founder of the prevailing economical school
has therein indicated the double point of view from which the economy of nations, like that of private separate individuals, should be regarded. The CAUSES of wealth are something TOTALLY DIFFERENT from wealth itself. A person may possess wealth, i.e. exchangeable value; if, however, he does not possess the power of producing objects of more value than he consumes, he will become poorer. A person may be poor; if he, however, possesses the power of producing a larger amount of valuable articles than he consumes, he becomes rich.
The power of PRODUCING wealth is therefore infinitely more important than wealth itself; it ensures not only the possession and the increase of what has been gained, but also the replacement of what has been lost. This is still more the case with entire nations (who cannot live out of mere rentals) than with private individuals. Germany has been devastated in every century by pestilence, by famine, or by civil or foreign wars; she has, nevertheless, always retained a great portion of her powers of production, and has thus quickly reattained some degree of prosperity; while rich and mighty but despot- and priest-ridden Spain, notwithstanding her comparative enjoyment of internal peace, has sunk deeper into poverty and misery.
The same sun still shines on the Spaniards, they still possess the same area of territory, their mines are still as rich, they are still the same people as before the discovery of America, and before the introduction of the Inquisition; but that nation has gradually lost her powers of production, and has therefore become poor and miserable.”
― The National System of Political Economy - Imperium Press
has therein indicated the double point of view from which the economy of nations, like that of private separate individuals, should be regarded. The CAUSES of wealth are something TOTALLY DIFFERENT from wealth itself. A person may possess wealth, i.e. exchangeable value; if, however, he does not possess the power of producing objects of more value than he consumes, he will become poorer. A person may be poor; if he, however, possesses the power of producing a larger amount of valuable articles than he consumes, he becomes rich.
The power of PRODUCING wealth is therefore infinitely more important than wealth itself; it ensures not only the possession and the increase of what has been gained, but also the replacement of what has been lost. This is still more the case with entire nations (who cannot live out of mere rentals) than with private individuals. Germany has been devastated in every century by pestilence, by famine, or by civil or foreign wars; she has, nevertheless, always retained a great portion of her powers of production, and has thus quickly reattained some degree of prosperity; while rich and mighty but despot- and priest-ridden Spain, notwithstanding her comparative enjoyment of internal peace, has sunk deeper into poverty and misery.
The same sun still shines on the Spaniards, they still possess the same area of territory, their mines are still as rich, they are still the same people as before the discovery of America, and before the introduction of the Inquisition; but that nation has gradually lost her powers of production, and has therefore become poor and miserable.”
― The National System of Political Economy - Imperium Press
“Owing to the isolation in which the agriculturist lives, and to his limited education, he is but little capable of adding anything to general civilisation or learning to estimate the value of political institutions, and much less still to take an active part in the administration of public affairs and of justice, or to defend his liberty and rights. Hence he is mostly in a state of dependence on the landed proprietor. Everywhere merely agricultural nations have lived in slavery, or oppressed by despotism, feudalism, or priestcraft. The mere exclusive possession of the soil gave the despot, the oligarchy, or the priestly caste a power over the mass of the agricultural population, of which the latter could not rid themselves of their own accord.
Under the powerful influence of habit, everywhere among merely agricultural nations has the yoke which brute force or superstition and priestcraft imposed upon them so grown into their very flesh that they come to regard it as a necessary constituent of their own body, as a condition of their very existence.
On the other hand, the separation and variety of the operations of business, and the confederation of the productive powers, press with irresistible force the various manufacturers towards one another. Friction produces sparks of the mind, as well as those of natural fire. Mental friction, however, only exists where people live together closely, where frequent contact in commercial, scientific, social, civil, and political matters exists, where there is large interchange both of goods and ideas. The more men live together in one and the same place, the more every one of these men depends in his business on the co-operation of all others, the more the business of every one of these individuals requires knowledge, circumspection, education, and the less that obstinacy, lawlessness, oppression and arrogant opposition to justice interfere with the exertions of all these individuals and with the objects at which they aim, so much the more perfect will the civil institutions be found, so much larger will be the degree of liberty enjoyed, so much more opportunity will be given for self-improvement and for co-operation in the improvement of others.
Therefore liberty and civilisation have everywhere and at all times emanated from towns, in ancient times in Greece and Italy, in the Middle Ages in Italy, Germany, Belgium, and Holland; later on in England, and still more recently in North America and France.
But there are two kinds of towns, one of which we may term the productive, the other the consuming kind. There are towns which work up raw materials, and pay the country districts for these, as well as for the means of subsistence which they require, by means of manufactured goods. These are the manufacturing towns, the productive ones. The more that these prosper, the more the agriculture of the country prospers, and the more powers that agriculture unfolds, so much the greater do those manufacturing towns become. But there are also towns where those live who simply consume the rents of the land. In all countries which are civilised to some extent, a large portion of the national income is consumed as rent in the towns. It would be false, however, were we to maintain as a general principle that this consumption is injurious to production, or does not tend to promote it. For the possibility of securing to oneself an independent life by the acquisition of rents is a powertul stimulus to economy and to the utilisation of savings in agriculture and in agricultural improvements. Moreover, the man who lives on rents, stimulated by the inclination to distinguish himself before his fellow-citizens, supported by his education and his independent position, will promote, civilisation, the efficiency of public institutions, of State administration, science and art.”
―
Under the powerful influence of habit, everywhere among merely agricultural nations has the yoke which brute force or superstition and priestcraft imposed upon them so grown into their very flesh that they come to regard it as a necessary constituent of their own body, as a condition of their very existence.
On the other hand, the separation and variety of the operations of business, and the confederation of the productive powers, press with irresistible force the various manufacturers towards one another. Friction produces sparks of the mind, as well as those of natural fire. Mental friction, however, only exists where people live together closely, where frequent contact in commercial, scientific, social, civil, and political matters exists, where there is large interchange both of goods and ideas. The more men live together in one and the same place, the more every one of these men depends in his business on the co-operation of all others, the more the business of every one of these individuals requires knowledge, circumspection, education, and the less that obstinacy, lawlessness, oppression and arrogant opposition to justice interfere with the exertions of all these individuals and with the objects at which they aim, so much the more perfect will the civil institutions be found, so much larger will be the degree of liberty enjoyed, so much more opportunity will be given for self-improvement and for co-operation in the improvement of others.
Therefore liberty and civilisation have everywhere and at all times emanated from towns, in ancient times in Greece and Italy, in the Middle Ages in Italy, Germany, Belgium, and Holland; later on in England, and still more recently in North America and France.
But there are two kinds of towns, one of which we may term the productive, the other the consuming kind. There are towns which work up raw materials, and pay the country districts for these, as well as for the means of subsistence which they require, by means of manufactured goods. These are the manufacturing towns, the productive ones. The more that these prosper, the more the agriculture of the country prospers, and the more powers that agriculture unfolds, so much the greater do those manufacturing towns become. But there are also towns where those live who simply consume the rents of the land. In all countries which are civilised to some extent, a large portion of the national income is consumed as rent in the towns. It would be false, however, were we to maintain as a general principle that this consumption is injurious to production, or does not tend to promote it. For the possibility of securing to oneself an independent life by the acquisition of rents is a powertul stimulus to economy and to the utilisation of savings in agriculture and in agricultural improvements. Moreover, the man who lives on rents, stimulated by the inclination to distinguish himself before his fellow-citizens, supported by his education and his independent position, will promote, civilisation, the efficiency of public institutions, of State administration, science and art.”
―
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