4 Quotes on Free Trade from Classical Economists
David Hume
Nothing is more usual, among states which have made some advances in
commerce, than to look on the progress of their neighbours with a
suspicious eye, to consider all trading states as their rivals, and to
suppose that it is impossible for any of them to flourish, but at their
expence. In opposition to this narrow and malignant opinion, I will
venture to assert, that the encrease of riches and commerce in any one
nation, instead of hurting, commonly promotes the riches and commerce of
all its neighbours; and that a state can scarcely carry its trade and
industry very far, where all the surrounding states are buried in
ignorance, sloth, and barbarism.
It is obvious, that the domestic industry of a people cannot be hurt
by the greatest prosperity of their neighbours; and as this branch of
commerce is undoubtedly the most important in any extensive kingdom, we
are so far removed from all reason of jealousy. But I go farther, and
observe, that where an open communication is preserved among nations, it
is impossible but the domestic industry of every one must receive an
encrease from the improvements of the others.
Frédéric Bastiat
The one thing that people overlook is that the sort of dependence
that results from exchange, i.e., from commercial transactions, is a
reciprocal dependence. We cannot be dependent upon a foreigner without
his being dependent upon us. Now, this is what constitutes the very
essence of society. To sever natural interrelations is not to make oneself independent, but to isolate oneself completely.
David Ricardo
Under a system of perfectly free commerce, each country naturally
devotes its capital and labour to such employments as are most
beneficial to each. This pursuit of individual advantage is admirably
connected with the universal good of the whole. By stimulating
industry, by rewarding ingenuity, and by using most efficaciously the
peculiar powers bestowed by nature, it distributes labour most
effectively and most economically: while, by increasing the general mass
of productions, it diffuses general benefit, and binds together by one
common tie of interest and intercourse, the universal society of nations
throughout the civilized world.
Adam Smith
The balance of produce and consumption may be constantly in favour of
a nation, though what is called the balance of trade be generally
against it. A nation may import to a greater value than it exports for
half a century, perhaps, together; the gold and silver which comes into
it during an this time may be all immediately sent out of it; its
circulating coin may gradually decay, different sorts of paper money
being substituted in its place, and even the debts, too, which it
contracts in the principal nations with whom it deals, may be gradually
increasing; and yet its real wealth, the exchangeable value of the
annual produce of its lands and labour, may, during the same period,
have been increasing in a much greater proportion. The state of our
North American colonies, and of the trade which they carried on with
Great Britain, before the commencement of the present disturbances, may
serve as a proof that this is by no means an impossible supposition.
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