POLI 441 Lecture Notes - Lecture 4: William Davenant, Real Analysis, Physiocracy
22 Oct 2018
School
Department
Course
Professor
Document Summary
Empirical observations: the dutch thrive with large imports, ireland exports 8 times as imports and grows poorer. Hume establishes the price-specie flow mechanism, observing that spain cannot hold onto all of its gold. What matters is the ability to produce, like adam smith developed later production capacity. British tariffs are levied, imports taking jobs from british manufacturers. Henry martyn: 1701 essay considerations upon the east india trade: east india trade destroys no profitable english manufacture, it deprives the people of no employment which we should wish to be preserved. Thought experiment with special machine versus importing from cheaper production location. Protection "is to oblige the things to be provided by the labour of many, which might as well be done by few". It is also to lose the labour of so many hands which might be employed to the profit of the kingdom. In analogy increasing the size of the pie without giving anyone else a smaller portion of it.
