Economic Sophisms

by Frédéric Bastiat

With reference to England's new policy of commercial freedom, many persons make this objection, which has, I am convinced, taken possession of the most candid minds among us: "Is England doing anything else than pursuing the same end by different means. Does she not always aspire at universal supremacy? Assured of her superiority in capital and labour, does she not invite free competition in order to stifle Continental industry, and so put herself in a situation to reign as a sovereign, having conquered the privilege of feeding and clothing the population she has ruined?"

It would not be difficult to demonstrate that these alarms are chimerical; that our alleged inferiority is much exaggerated; that our great branches of industry not only maintain their ground, but are actually developed under the action of external competition, and that the infallible effect of such competition is to bring about an increase of general consumption, capable of absorbing both home and foreign products.

At present, I desire to make a direct answer to the objection, leaving it all the advantage of the ground chosen by the objectors. Keeping out of view for the present the special case of England and France, I shall inquire in a general way whether, when, by its superiority in one branch of industry, a nation comes to outrival and put down a similar branch of industry existing among another people, the former has advanced one step towards domination, or the latter towards dependence; in' other words, whether both nations do not gain by the operation, and whether it is not the nation which is outrivalled that gains the most.

If we saw in a product nothing more than an opportunity of bestowing labour, the alarms of the protectionists would undoubtedly be well-founded. Were we to consider iron, for example, only in its relations with ironmasters, we might be led to fear that the competition of a country where it is the gratuitous gift of nature would extinguish the furnaces of another country where both ore and fuel are scarce.

But is this a complete view of the subject? Has iron relations only with those who make it? Has it no relations with those who use it? Is its sole and ultimate destination to be produced? And if it is useful, not on account of the labour to which it gives employment, but on account of the qualities it possesses, of the numerous purposes to which its durability and malleability adapt it, does it not follow that the foreigner cannot reduce its price, even so far as to render its production at home unprofitable, without doing us more good in this last respect, than harm in the other?

Pray consider how many things there are which foreigners, by reason of the natural advantages by which they are surrounded, prevent our producing directly, and with reference to which we are placed in reality in the hypothetical position we have been examining with reference to iron. We produce at home neither tea, coffee, gold, nor silver. Is our industry en masse diminished in consequence? No; only in order to create the counter-value of these imported commodities, in order to acquire them by means of exchange, we detach from our national labour a portion less great than would be required to produce these things ourselves. More labour thus remains to be devoted to the procuring of other enjoyments. We are so much the richer and so much the stronger. All that external competition can do, even in cases where it puts an end absolutely to a determinate branch of industry, is to economize labour, and increase our productive power. Is this, in the case of the foreigner, the road to domination!

If we should find in France a gold mine, it does not follow that it would be for our interest to work it. Nay, it is certain that the enterprise would be neglected if each ounce of gold absorbed more of our labour than an ounce of gold purchased abroad with cloth. In this case we should do better to find our mines in our workshops. And what is true of gold is true of iron.

The illusion proceeds from our failure to see one thing, which is, that foreign superiority never puts a stop to national industry, except under a determinate form, and under that form only renders it superfluous by placing at our disposal the result of the very labour thus superseded. If men lived in diving-bells under water, and had to provide themselves with air by means of a pump, this would be a great source of employment. To throw obstacles in the way of such employment, as long as men were left in this condition would be to inflict upon them a frightful injury. But if the labour ceases because the necessity for its exertion no longer exists, because men are placed in a medium where air is introduced into their lungs without effort, then the loss of that labour is not to be regretted, except in the eyes of men who obstinately persist in seeing in labour nothing but labour in the abstract.

It is exactly this kind of labour which machinery, commercial freedom, progress of every kind, gradually supersedes; not useful labour, but labour become superfluous, without object, and without result. On the contrary, protection sets that sort of useless labour to work; it places us again under water, to bring the air-pump into play; it forces us to apply for gold to the inaccessible national mine, rather than to the national workshops. All the effect is expressed by the words, depredation of forces.

It will be understood that I am speaking here of general effects, not of the temporary inconvenience which is always caused by the transition from a bad system to a good one. A momentary derangement accompanies necessarily all progress. This may be a reason for making the transition gently and gradually. It is no reason for putting a stop systematically to all progress, still less for misunderstanding it.