Summary Of "Private And National Economy In Argentina" By Friedrich List - UNIVERSITY SUMMARIES - E-book - ePub

We have summarized here the essential of this book by the author. PRIVATE AND NATIONAL ECONOMY IN ARGENTINACHAPTER 14 THE PRIVATE ECONOMY AND THE NATIONAL ECONOMYWe have proven that national unity is the essential condition for lasting prosperity; we have verified how only where private interest has been subordinated to public interest have peoples reached a harmonious development of their productive forces.
We will now show how the liberal school has masked its lack of understanding of national interests and the effects of the association of national forces, confusing the maxims of private economy with those of public economy. Adam Smith, the main representative of the school, says that pursuing nothing but his own interest each individual necessarily works for the interest of society. The politician who intends to direct individuals in the use of their capital, would assume an authority over the producer that does not correspond to him.
Smith considers that commercial relations aimed at promoting the country's industry are absurd; that the nation must, like the individual, buy where it finds the cheapest price, and to achieve the highest degree of public welfare one only has to follow the maxim of laissez faire, laissez passer. He compares a nation that would like to stimulate its industry with the help of protective rights to a shoemaker who would set up a toll at his doorstep in order to increase his wealth.