A comprehensive and thoroughly persuasive revision of political economic theory. Focussing primarily on what is termed elsewhere as the 'theory of infant industry' - List gives a largely holistic demonstration of his nationalist economic viewpoint from the viewpoint of a 1840s liberal. While liberal viewpoints are interjected throughout the thesis (and possibly prevent List from even more profound findings), the book is a testament to independent, non-conformist economic theory.

The book demonstrates (via 4 sub-books - 1. History, 2. Theory, 3. Systems (of economic theory), 4. Politics) that the cosmopolitan, free-trade theories of the likes of Adam Smith, and Jean Baptiste Say (of Say's Law), is not adequate to reflect real world conditions. Instead, List proposes the nationalist theory.

He shows that of primary importance for laying the groundwork for economic theory is not wealth, but power - that power is the true determining driver of the actions of competing/cooperating nation states. While wealth is obviously of importance in the short run, the long run drivers of political independence are those factors that CREATE wealth - and of primary importance is a strong manufacturing industry (which has exponential benefits to the nation). Underlying the creation of a national industry, then, includes a trade protectionism (which does NOT result in monopoly given domestic competition), free trade of agricultural produce, transportation networks, colonialism, a navy, developing/stealing workmen/trading knowledge/capital, the fostering of a national identity/spirit, reinvesting rental incomes into the nation, stability of the balance of payments, and the prevention of over-exposure of money supply from foreign nations (e.g. American bullion crises) etc. He also questions the 'division of labour' theory of Smith, stating that it is both the division, AS WELL AS the skill/unification of workers towards a common goal that increases productivity. He also shows that this (i.e. importance of skill and unification of a goal) can be applied outside of the organisation, and applies also on a national scale. Of course, the circumstances of the nation determine what trade policy is best - a primitive agricultural nation could not compete on any level with a superior manufacturing nation, and should therefore allow more free trade (in order to develop its civility and economic strength).

All of this is in opposition of the theories of the (still dominant) theories of the free trade school, prioritising the individual, thereby distilling economics to the theory of value and wealth (over power/skill/unification/non-material factors). This leads to a theory which promotes seeking trade at 'whatever price is most profitable to the isolated individual', thereby inevitably resulting in the subversion of the national industry (in favour of other, more competitive markets, e.g. see France and Portugal's laissez faire attitude towards English manufacturing supremacy and inevitable political subjugation), and exposes the nations stability and strength to war and foreign economic crises. Smith's focus on value leaves his theory open to egregious mistakes, such as prioritising the largely unproductive farmer (who produces goods of value) over teachers, lawyers, administrators, etc. (who produce no goods, but still help a nation develop its powers of production).

Book 1 covers the history of various nations at the peak of their economic/political strength (by the time of writing ~1840), including the Renaissance Italian states, Hanseatic League, the Netherlands, England, Spain/Portugal, France, Germany, Russia, and the US. England's account is most relevant, detailing the path to England's 1800s superiority through protection of its wool and textile industry. Most interestingly, though, is England's increasingly clear policy of 'kicking away the ladder' for other developing economies - purposefully obfuscating the theories and measures which led to its success, instead promoting theories detrimental to developing nations (e.g. the cosmopolitan school of Smith). As a side note, this intentional subversion has significant implications for modern protective measures - in that the maintenance of political supremacy also includes the need for *ideological* protection.

The second book develops these theories in detail, taking each axiom individually and developing it.

The third book tests List's thesis against other popular schools (e.g. mercantilist school), and particularly demonstrates the weakness of Smith's individualistic theory.

The fourth book looks towards contemporary 1840s European politics, highlighting English economic supremacy and developing a path for the continental nations and the US to forge a path of national independence.

The book, as I say, is comprehensive, restating concepts numerous times, including numerous examples, and numerous explanations, leaving the reader thoroughly inculcated with the major details of his theory.

Given that Listian economics has been largely abandoned in the classroom, one wonders whether a nationalist political economic School would further develop these theories beyond the road set out by List himself. Indeed, there are points where List seems to fail to develop certain axioms (e.g. why key agricultural industries do not need protecting, his support for free-trade policies WITHIN the nation), and how much his liberal outlook has potentially blocked his path towards further discoveries.

one of the coolest economic philosophers, even though i don’t agree with a lot of his theory or ideas or philosophy etc. he gave me a lot of things to think about that i hadn’t considered, which is something i’m always happy to have so