Economic nationalism

Economic nationalism is the doctrine of protecting one's national economy at all costs, even at the expense of others.

History
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In contrast to the liberal consensus of letting the economy follow its own course is the school of national political economy and one of its exponents, Friedrich List argues that rather than pick a laissez-faire approach, protectionism in the form of tariffs actually helps in the development of national industries, and in turn, the economy as a whole (List, 1966 pp. 105-6). Determining that governmental policy and British control of key ports and economic supplies formed the cornerstone of British economic progress, List suggested that government had the responsibility of creating a strong economy by, contrary to the liberal consensus, playing an active role in economic development (List, 1966 pp. 119-120). Whereas liberals argue the state should restrict its role, List argues that state policy must play an active part, nothing that “the individual chiefly obtains by means of the nation and in the nation mental culture, powers of production, security, and prosperity, so is the civilization of the human race only …. possible by means of the civilization and development of the individual nation. (1966, pg. 141)”. List was writing his National Political Economy in the face of British commercial supremacy and was trying to determine a way of creating a stronger German state, and for List the only way to accomplish this was by creating a strong economy (List, 1966, pp. 31-2). Liberalisation of an underdeveloped economy results in the domestic market being dominated by large foreign multinationals or (more frequently) unfavourable terms of trade which increase exposure to international economic volatility, or the dominance of the economy and the sustenance of people’s lives by foreign outsiders who may not have an interest in the welfare of the nation as a whole at heart (List, 1966, p 24 & pp 47-8, & p 162).