List’s contribution to economics in general
List’s contribution to economic theory may be summarized briefly: his ultimate goal was the moral elevation of global civilization. This could only succeed through industrialization and a corresponding refinement of the individual citizen.
He saw the legal system as a lever for this development. He warned that a lack at industry had destabilizing effects (List, 1837a, p. 56). On the other hand, he argued that industrialization would elevate civilization by demanding a highly developed infrastructure and therefore educated and skilled workers with a high moral standard ensuring high-quality conditions of work and trade. High morality and skill would require general welfare. In order to industrialize, any country’s government would need to consciously develop the country’s infrastructure in all of its ideal and material aspects: its educative, communicative and administrative system, including the legal system, which was indeed to have the pivotal role.According to List’s stage theory of productive powers, which he says he developed after his American experience (List, 1827, p. 161), an industrializing country would have to go through a period of free trade and export of commodities and gradual introduction of industry, followed by a period of protective trade policy, in conjunction with the establishment of protective navigation laws and naval policy. Finally there would be a return to free trade when all economic sectors had been developed.
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