Friedrich List, notable German economist and scholar, first wrote
his outlines of American
Political Economy in 1827,
as a series of
letters to Charles Ingersoll so as to further the cause of the American
System. Though at first an adherent and believer in Adam Smith''s system
of Free Trade, List uses his outlines to refute Free Trade in no
uncertain terms.
He speaks with sarcasm of those who would seek to buy weapons cheaply
from the enemy during war and illustrates how Free Trade is a system
which would only succeed in keeping the then newly freed states of
America dependent on Britain whereas the American system of tariffs and
protectionism would allow it to build up manufactories and thus
increase its own productive power and by doing so increase the nation''s
independence. This he states, the capital of mind and the question of
the independence of states is of fundamental importance in affairs of
political economy.
He raises important points when he states that individual economy is
not political economy and also gives examples of how Smith''s theory of
free trade works in theory but in practice is inferior to the system of
American Political Economy. Politically, List made some mistakes, such
as his support of the traitor Andrew Jackson. But overall, his
contribution to the United States and to the American System is one
that cannot be understated.