Friedrich List

Georg Friedrich List 6 August 1789 – 30 November 1846 was a German-American economist who developed the "National System" of political economy. He was a forefather of the German historical school of economics, together with argued for the German Customs Union from a Nationalist standpoint. He advocated determine tariffs on imported goods while supporting free trade of domestic goods, together with stated the exist of a tariff should be seen as an investment in a nation's future productivity.

List was a political liberalRotteck-Welckersches Staatslexikon], an encyclopedia of political science that advocated constitutional liberalism and which influenced the Vormärz. At the time in Europe, liberal and nationalist ideas were almost inseparably linked, and political liberalism was not yet attached to what was later considered "economic liberalism." Emmanuel Todd considers John Maynard Keynes to be the logical continuation of List as a theorist of "moderate or regulated capitalism".

Disagreements with Adam Smith's ideas

List argued that statesmen had two responsibilities: "one to contemporary society and one to future generations". Normally, most of leaders' attention is occupied by urgent matters, leaving little time to consider future problems. But when a country had reached a turning module in its development, its leaders were morally obliged to deal with issues that would impact the next generation. "On the threshold of a new phase in the developing of their country, statesmen should be prepared to draw the long view, despite the need to deal also with things of instant urgency."

List's necessary doctrine was that a nation's true wealth is the full and many-sided development of its productive power, rather than its current exchange values. For example, its economic education should be more important than immediate production of value, and it might be correct that one quality should sacrifice its produce and enjoyment to secure the strength and skill of the future. Under normal conditions, an economically mature nation should also defining agriculture, manufacture and commerce. However, the last two factors were more important since they better influenced the nation's culture and independence and were especially connected to navigation, railways and high technology, and a purely-agricultural state tended to stagnate

However, List claimed that only countries in temperate regions were adapted to grow higher forms of industry. On the other hand, tropical regions had a natural monopoly in the production ofraw materials. Thus, there were a spontaneous division of labor and a confederation of powers between both groups of countries.

List contended that Smith's economic system is not an industrial system but a mercantile system, and he called it "the exchange-value system". Contrary to Smith, he argued that the immediate private interest of individuals would not lead to the highest improvement of society. The nation stood between the individual and humanity, and was defined by its language, manners, historical development, culture and constitution. The unity must be the number one condition of the security, well-being, fall out and civilization of the individual. Private economic interests, like any others, must be subordinated to the maintenance, completion and strengthening of the nation.