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Week 5: Basiat and List - Coggle Diagram

- - - - Sophism: clever but false argument intent on deceiving
        
        The villain: local producers themselves as their interests are overrepresented in Parliament
        
        Highly concerned with the consumer
        
        Aligns with Smith, as noted in WoN:
        “Consumption is the sole end and purpose of all production; and the interest of the producer ought to be attended to only so far as it may be necessary for promoting that of the consumer.” Smith, 1776. Book IV, chapter 8, 49)
        
        "Whatever the protectionists may say, it is no less certain that the basic principle of restriction is the same as the basic principle of breaks in the track: the sacrifice of the consumer to the producer, of the end to the means." Book 1 pg. 95
    - - One example of the ridicule at which he treats people who are protectionist is he talks about an argument made that protectionism is good for infant industries and domestic enterprise
        Well if we take that principle and think about candlemakers who went to petition the King that we should ban sunlight because it provides competition for candles
- - - - Confederation of the Rhine
        
        16 states united by Napoleon
        
        Facilitating commerce in these areas i.e. trading bloc
        
        Breaks political and economic barriers - free trade zone
        
        Dissolves Holy Roman Empire
        
        Lasts 1806-1813
  - - - England is France's great rival
        
        Manchester school - influential economic thought
        
        1833 - free trade and labour
        
        1849 - abolition of slavery
        
        Abolition of protectionist navigation acts
        
        Britain becomes free trade nation
      - Europe:
        
        1860 - Cobden Chevalier Treat
        
        1872 - protection is back, tariff protection relied on to protect agrarian interest groups
- - - - In a market with more developed nations, less developed nations cannot develop without state intervention (i.e. protection) - countries that have more specialised division of labour will pursue those tasks and there’s no way you can see a transition for the countries with who they are trading
        
        Cosmopolitical (not political) economy i.e. the principle of political economy applied to a sort of cosmopolitan developed society and not so much the classical political economy to a country thats at an early stage of development
        
        Cosmopolitical economy: tries to understand how all people of the entire universe can increase their power and their prosperity
        
        These conditions don't exist and therefore free trade would not be good
        
        Political economy: how an individual nation-state can increase its power and prosperity based on their own individual circumstances
        
        “A nation which through protective duties and restrictions on navigation has developed its manufacturing power and its navigation to such a degree that no other nation is able to engage in free competition with it can do nothing shrewder than throw away this ladder to its greatness, preach to other nations the benefits of free trade, and confess penitently that it has hitherto wandered the path of error, only now discovering the truth.”
    - - Theory of Powers of Production
        
        "The instructors of youths and of adults, virtuosos, musicians, physicians, judges, and administrators, are productive in a much higher degree"
        
        Productive powers of an individual or nation. Enables further generation of wealth.
        
        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.
        
        "The nation must sacrifice and give up a measure of material property in order to gain culture, skill, and powers of united production; it must sacrifice some present advantages in order to insure to itself future ones."
        
        “Smith was too exclusively possessed by the cosmopolitical idea of the physiocrats, ‘universal freedom of trade’, and by his own great discovery, ‘the division of labour’ to follow up the idea of the importance to a nation of its powers of production"
      - Theory of Value
        
        To be considered after powers of production. Being paid for work that is not necessarily generating more wealth for the individual or others around him
        
        "Certainly those who fatten pigs or prepare pills are productive"
        
        These are the values of exchange rather than productive powers
- - - - Critique emerging of Britain from India that emerges as a result of List
        
        Ideas of a figure like List are influential in terms of anti-imperial thought