Economics · A History of Economic Thought by V Lokanathan
Chapter 16 : THE NATIONALISTS
Table of contents14 sections
- 1.THE NATIONALISTS
- 2.The Social and Political Background of the School
- 3.Key Terms
- 4.📌 Exam Tidbits
- 5.Adam Muller (1779-1829)
- 6.Key Terms
- 7.📌 Exam Tidbits
- 8.Friedrich List (1789-1846)
- 9.Economic Ideas of List
- 10.List's Ideas on Protectionism
- 11.Conclusion
- 12.Key Terms
- 13.📌 Exam Tidbits
- 14.Quick-Recall Box
Chapter preview
THE NATIONALISTS
The Nationalists were politico-economic writers of the first half of the nineteenth century, found largely outside England, especially in Germany.
- They were fierce critics of the classical school, specifically attacking its doctrines of individualism, cosmopolitanism, and free-trade.
- Primary Goal: They advocated steps to increase the aggregate productive powers of the nations.
Core Philosophy:
| Classical Economists | The Nationalists |
|---|---|
| Looked at national wealth merely as the sum of wealth of individuals. | Considered individuals merely as dependent parts of the nation; individual wealth and welfare depended entirely upon the wealth and welfare of the nation. Subordinated the interests of the individuals to the interests of the nation. |
The Social and Political Background of the School
At the beginning of the nineteenth century, the practical weaknesses of extreme individualism and Laissez-faire became evident in dealing with contemporary problems such as unemployment, poverty, and war. This environment gave rise to liberal social reformers, socialists, and Nationalists.
- Industrial Inequality: There was significant inequality among nations regarding industrial development. Nationalists suggested steps, including protective tariffs, to promote domestic industrial development.
Relationship to Mercantilism:
| Nationalism | Mercantilism |
|---|---|
| Philosophically more sophisticated, though it resembles Mercantilism in some respects (e.g., advocating protective steps). | Less philosophically sophisticated compared to Nationalism. |
- The German Context: Germany became the centre of Nationalism, revolting against the teachings of Adam Smith and classical writers (whose theories were deemed suitable for England but not Germany).
- At the time, Germany was industrially backward, predominantly agricultural, and politically divided into a number of weak states fighting each other.
- Ultimate Aim: The unification of Germany so it could become a mighty industrial power on par with Britain.
Two Groups of Nationalists The source identifies two distinct groups among the nationalists:
| Group | Champion | Core Focus & Ideals |
|---|---|---|
| Philosophic Nationalists | Adam Muller | Stood for the ideals of stability and permanence. |
| The Protectionists | Friedrich List | Emphasized the role of protective tariffs in the industrial development of the nation. |
Key Terms
📌 Exam Tidbits
- Key Contrast: Classical School (wealth of individuals = national wealth; cosmopolitanism) vs. Nationalists (individual is a dependent part of the nation;…
This is a 350-word maximum preview. The complete chapter remains available only with the Economics plan.
Locked chapter
This chapter is part of the Economics plan
Subscribe to read every chapter on any device. Free chapters remain readable for everyone.
View plans Chapter 17 : SISMONDI (1773-1842)