Friedrich List Flashcards
What was the role of economic policy in the Napoleonic Wars?
The wars saw the first large-scale economic embargo used as a tactic of war. The Continental Blockade (1806) was designed to paralyse British commerce and cripple its economy, aiming to force Britain out of the war.
What was the Confederation of the Rhine?
1806-1813 - Napoleon’s confederation of German client states after the defeat of Austria and Russia broke down the political and economic barriers between the states. It established open trade within the new empire while initiating protective measures against outsiders.
What was the German Confederation?
Created by the Vienna Congress in 1815 to replace Napolean rule. Initially, the confederation was the first purely economic alliance in Europe and was guided by the Federal Convention.
What were List’s opinions on economic universalism?
Critical of the universal application of economic thought that neglects individual state needs
Adam Smith - Neglects the role economic interests have in causing conflict; labels other systems as ‘inefficient’ without further investigation into their purpose
J.B. Say – Acknowledges the existence of a national economy (‘public economy’) but does not explain how these interests will work within his cosmopolitan (‘political’) economy
All hold the assumption that the unification of states guarantees peace through economic affiliation that encourages cooperation
How does List view the connection between political affiliation and economic affiliation?
Current assumption is that political unification is formed as a result of commercial unification, but history shows that it is the opposite
Once politically aligned and with similar economic interests/objectives, it is mutually beneficial for states to conduct open trade
However, when open trade is initiated before political alignment, it opens the lesser-developed nation to exploitation
List specifically connects this to the US colony being exploited for their natural resources by Britain – this can be connected to Luxembourg
Why did List argue protectionism was necessary?
During his time in the US, List developed arguments for economic nationalism and increased protectionism alongside American entrepreneurs. Encountering numerous founding fathers, like Alexander Hamilton, List developed the belief that protective tariffs would empower states falling behind England.
What was the relationship of List to the German historical school?
List both influenced and was influenced by the emerging historical school. He drew heavily on the works of early adopters, such as Jean-Antoine Chaptal, when arguing that economic policy should vary depending on the needs of individual states. List was also credited for shaping the early ideas of the school – although not an official member.
