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Writing: The National Gain

The National Gain, § 9

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§ 9

Neither production bounties nor premiums for exports stand the test that they

increase or promote the national profit in any way.

These are widely used throughout most of Europe but especially in England, yet everywhere they infallibly increase their actual loss. The production bounties are harmful in a straightforward way but those for exports in two ways.

If there are enough workers in a trade and production bounties are nevertheless provided, too many people will be drawn from other trades, it will become less profitable, owing to a surplus of commodities, and the bounties will cause a shortage of workers in other profitable branches of business, and the state is burdened by enriching particular citizens. If people will not engage in an established trade without subsidies, it is obvious that it is less profitable than the others where there is no shortage of workers.

If the state compensates for the losses caused to the workers and the nation in that trade by providing subsidies, there will of course be those who will engage in it, but their labour will be wanting in a more profitable trade. The amount by which the values of the respective products differ will unquestionably constitute a loss to the nation.

 

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