Brief quotations from the writings of Alexander Hamilton and Friedrich List are given in this chapter. Based on these short bits of writing, compare the ideas of these two political economists with those of two contemporary political economists. What do they have in common that makes them all mercantilists or neomercantilists? How do they differ in the policies that they suggest nations take?

Question

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The Answer is Alexander Hamilton and Friedrich List were both proponents of mercantilist economic policies, which prioritize the accumulation of wealth and power through trade and the protection of domestic industries. They both believed in the importance of government intervention in the economy, including tariffs and subsidies, to promote domestic industry and protect national interests.

In contrast, two contemporary political economists, such as Dani Rodrik and Ha-Joon Chang, also advocate for government intervention in the economy but with a focus on different policies. Rodrik emphasizes the importance of industrial policy and strategic trade policies to promote economic development, while Chang advocates for a more active role of the state in promoting industrialization and protecting domestic industries.

What these economists have in common is their belief in the importance of government intervention in the economy to promote national interests and economic development. They all share a skepticism towards free trade and a belief in the need for protectionist measures to support domestic industries.

However, they differ in the specific policies they suggest nations take. Hamilton and List focused on the use of tariffs and subsidies to protect and promote domestic industries, while contemporary economists like Rodrik and Chang emphasize the importance of industrial policy and strategic trade policies to promote economic development.

Overall, while these economists may differ in the specific policies they advocate, they all share a common belief in the importance of government intervention in the economy to promote national interests and economic development, making them all mercantilists or neomercantilists.

Brief Quotations from the Writings of Alexander Hamilton and Friedrich