Friedrich List German economist, publicist, politician Date of Birth: 06.08.1789 Country: Germany

1. Biography of Friedrich List
2. Early Life and Career
3. Emigration to America
4. Contributions to Economic Thought
5. Legacy

Biography of Friedrich List

Friedrich List (1789-1846) was a German economist, publicist, and politician known for his contributions to economic policy and his critique of classical political economy. He was born on August 6, 1789, in Rietlingen, Württemberg, into a prosperous artisan family. List began his career working in his father's workshop and later held various positions in government service, eventually becoming an accounting advisor in Stuttgart.

Early Life and Career

List studied law at the University of Tübingen and became a professor of public administration at the same university in 1817. As a brilliant publicist and skilled orator, he frequently advocated for radical democratic reforms. In 1819, List co-founded the General Association of German Industrialists and Merchants, aiming to achieve economic unity in Germany. However, he was forced to leave his teaching position at the university that same year. List was later elected to the Württemberg parliament but was stripped of his mandate and sentenced to 10 months in prison for undermining state power.

Emigration to America

Under pressure from authorities, List emigrated to the United States in 1825, where he successfully engaged in entrepreneurship. During his time in America, he wrote a protectionist economic program for the U.S. government. In 1832, List returned to Germany as a U.S. citizen and consul in Leipzig. He later moved to Paris in 1837, where he studied political economy and wrote his major work, "The National System of Political Economy" (1841), published in Augsburg.

Contributions to Economic Thought

List was not a theoretical economist in the strictest sense, as he focused more on questions of economic policy, particularly in foreign trade. He rejected English classical political economy, which he criticized for ignoring the national peculiarities of economic development in different countries, and labeled it cosmopolitan. This allowed him to develop his own original concept of productive forces as an alternative to Adam Smith's theory of exchange value.

As a staunch supporter of protectionism, List believed that unrestricted free trade hindered the development of productive forces in less developed countries due to their varying levels of economic development. He emphasized the necessity of industrial growth and proposed stimulating it through measures of "educational protectionism," which advocated protection against foreign competition. Additionally, he argued that any economic decision should be made not only based on its immediate efficiency but also considering its long-term and indirect consequences. Therefore, List was one of the early explorers of the external effects of developing productive forces, later known as "external economies" and "external losses," predating Alfred Marshall.

Legacy

Friedrich List left a notable legacy in the history of German economic thought. His ideas influenced the formation of the German Historical School, whose representatives, following List, had a negative view of English classical political economy. They viewed political economy primarily as a science of national economy and placed great importance on the concept of stages of economic development in individual countries.