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Friedrich List: Excerpt from National System of Political Economy (1841)

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The principle of the division of labor has been hitherto but imperfectly understood. Industrial production depends much less on the apportioning of the various operations of a manufacture among several individuals, than on the moral and material association of those individuals for a common end.

This principle applies not only to a manufacture or to a rural industry; it extends also to every kind of national industry, agricultural, manufacturing, and commercial.

The division of labor and the combination of productive power take place in a nation when the intellectual power is applied so as to co-operate freely and efficiently with national production, when manufacturing industry and trade are equally and harmoniously developed.

A merely agricultural people in free intercourse with manufacturing and trading nations, will lose a considerable part of their productive power and natural resources, which must remain idle and unemployed. Its intellectual and political culture, and its means of defence, will thus be limited. It can possess neither an important navigation, nor an extensive trade; its prosperity, as far as it results from external commerce, may be interrupted, disturbed, or annihilated by foreign legislation or by war.

On the other hand, manufacturing industry is favorable to science, art, and political progress; it promotes the general welfare, increases population, public revenue, and the power of the country; it enables the latter to extend its influence to all parts of the world, and to found colonies; it sustains fisheries and navies, mercantile and national. By it only, can agriculture rise to any high degree of efficiency and perfection.

Agriculture and manufacturing industry united in the same nation, under the same political power, live in perpetual peace; they are disturbed in their reciprocal action, neither by war, nor by foreign legislation; they ensure to a nation the continued development of its prosperity, civilization, and power.

Agriculture and manufacturing industry are subjected by nature to special conditions.

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