Kootut teokset | Samlade skrifter | Selected Works
Writing: The National Gain

The National Gain, § 10

Previous Section:

Next Section:

Font size: A A A A


Viewing Options:

§ 10

Export bounties have not only the above-mentioned disadvantages, however, but also far more serious ones: citizens are here taxed twice the amount of the bounty that is paid and hand over a large proportion of that to foreigners, which cannot but concern anyone who has any sense of patriotism.

The vendor always seeks the highest price for his commodity. The owner agrees to sell it to a foreigner at 6 riksdaler, for instance, but receives 2 riksdaler as a subsidy for it and thus earns 8 riksdaler for his commodity.

If a Swede should wish to purchase the same commodity, he will indubitably have to pay the vendor the same that he earns from what he has sold to a foreigner, namely 8 riksdaler, or else the vendor will regard himself as having lost on the transaction.

The foreigner thus enjoys a purchase price that is 2 riksdaler lower due to the export bounties, while a local man is doubly taxed, namely 2 riksdaler to the fund to reduce the cost of purchase to the foreigner and 2 riksdaler to indemnify the vendor.

This must also enable the foreigner to conduct a very advantageous trade in our products among ourselves. I shall extend the simple example above: The Swedish manufactures that were sold to the foreigner for 6 riksdaler can immediately be sold by him, at a profit of 25 per cent, for 7½ riksdaler to a Swede, who will then be able to buy them for ½ a riksdaler, or 8⅓ per cent less1 than from the manufacturer’s retail shop, so that there will never be a lack of buyers.

If one then adds the 33⅓ per cent advantage on the foreigner’s purchase price to the 25 per cent gained on his sales, it will produce a profit of 58⅓ per cent for him,2 due merely to the export bounties, which would never otherwise have arisen or been possible. Nor is that simply a theoretically demonstrated truth, as it has also been proved in practice many times over.

I would be able to reveal a little business plan that could earn Sweden several thousand from some foreign export bounties if I did not fear to awaken others from their slumbers, when they might seek to close some of the loopholes that at present, without showing up in the trade figures, actually reduce our deficit.

I therefore hope quite sincerely that the English and other nations will not only retain their export bounties but also that they may be significantly increased on all those commodities that can be sold to us, while our own country will, on the contrary, get rid of them, together with the fetters that prevent us from freely and actively exploiting our neighbours.


  1. 8⅓ per cent less: Chydenius made a mistake in calculating the percentages. It ought to be 6.25 per cent.
  2. profit of 58⅓ per cent for him: Chydenius here makes another mistake when he adds 25 per cent to 33⅓ per cent. Percentages cannot be added in this way.

Previous Section:

Next Section:

Places:

Names:

Biblical references:

Subjects: