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Writing: The National Gain

The National Gain, § 3

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§ 3

If the statement were in all respects true that Sweden during the past year of 1764 exported commodities for approximately 72 million daler kmt but the imported ones amounted to no more than 66 million, then our national profit for that year would be six million daler.

Of the total sum of our exports, the value of iron constitutes almost two-thirds, but let us suppose that within a century the export of iron will have been reduced by half, owing to a reduction in forest or for some other reasons, and would thus constitute no more than one-third of our exports, while others, such as grain, provisions and timber, were exported in place of the one-third lost in the iron trade. My question, assuming all other exported and imported commodities to be of the same value as now, is whether the national profit would not then remain at the same level? Or, should the iron exports at a certain time be reduced in value by six million daler but the ten million paid to foreigners for grain last year instead be retained in the kingdom, would the nation not after all have gained four million by that change?

If we imagine a state that possessed neither agriculture nor a mining industry, neither cattle-raising nor shipping, but only produced a large quantity of earthen or clay vessels that were in demand throughout Europe and would thereby not only be supplied with all its necessities but also annually receive two million in gold and silver, would those two million then not undeniably constitute a profit for that nation?

However, if one-third of the same nation, following the example of others, were to abandon this industry of theirs and become farmers, with the intention of obtaining bread for themselves and their fellow citizens by that means, in the belief that they would gain more thereby, but the grain were to be worth 1 million less than the former output of that third, then it is clear that it has earned the nation 1 million less in profit, or, in other words, incurred a loss of the same magnitude.

This makes it obvious that a nation does not gain by being employed in many kinds of trades but by engaging in those industries that are most profitable, that is, where the smallest number of people can produce commodities of the highest value.

 

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