‘A good system of protection does not imply any monopoly in the manufacturers of a country; it only furnishes a guarantee against losses to those who devote their capital, their talents, and their exertions to new branches of industry.’
In 1825, Friedrich List emigrated to the United States and was heavily influenced by American protectionist policies at the time. Convinced of the correctness of American protectionist policies when America was in the midst of a debate over free trade, he wrote a series of letters justifying these policies. These letters were later published under the title Outlines of American Political Economy and served as a precursor to his magnum opus The National System of Political Economy.
Friedrich List was a German economist who popularised the idea of using tariffs and protectionist policies to develop a nation’s domestic industries. He was also a politician actively involved in the establishment of the Zollverein, the German Customs Union that paved the way for the unification of Germany.