Chapter 2.2: 19th century mercantilism - Hamilton and List Flashcards
Which 2 countries are closely linked with the re-emergence of neo-mercantilist doctrines?
Germany and United States
The rise of ___________ in the 18th and 19th centuries served a severe blow to the then intellectual predominance of mercantilism
economic liberalism
What is the main thrust of 19th century mercantilism?
central role of nation-building and state intervention for promoting economic growth in industrial ‘latecomers’
Economic nationalists such as Friedrich List and Alexander Hamilton were politically opposed to?
the universal claims of free trade liberals
- liberal economic policy worked for mature industrialised countries such as Britain
- country at earlier stage of economic development had to rely on different policies
What did List agree with liberalism?
that the end goal was the same
namely, open competition and free trade in global economy
What belief united 19th century economic nationalists?
the state played a central role in directing economic activity and promoting growth
List argued that the state had to further the productive powers of a nation. Specific policies advocated by nationalists included?
- protectionism
- promotion of ‘infant industries’
- education
- infrastructure
who argues that the state had to nurture the product powers of a nation?
Friedrich List
What policy is when the state has to intervene in trade and erect barriers to protect domestic producers?
Protectionism
Why protectionism?
free trade serves interest primary to most advanced economies and that less developed nations lose out to superior industries
Why promotion of ‘infant industries’?
to allow them to establish themselves and reach a state of international competitiveness,
the state has to to shield domestic industries from foreign competitors until they have accumulated sufficient capital and technology to withstand international competition
Who stressed the importance of national education strategy to develop fully the human capital of a society?
Friedrich List
What helps industries and commerce overcome ‘market failures’?
infrastructure provided by the state
