"The concentration and reciprocal effect of industry and agriculture conjoin in a growth of productive powers, which increases more in geometrical than in arithmetical proportion"
About this Quote
List is arguing that economic development isn’t a simple tally of outputs; it’s a compounding system. The key move is his pairing of “concentration” with “reciprocal effect.” Industry and agriculture, in his view, don’t merely coexist. When clustered and connected - via infrastructure, urban markets, specialized labor, and reliable demand - they start to amplify one another. Farms feed factories; factories supply tools, fertilizers, rails, and cheaper goods back to the countryside. That loop is the engine.
The “geometrical” versus “arithmetical” contrast is doing rhetorical heavy lifting. It’s a way of insisting that national wealth can scale nonlinearly when a country builds the right complementarities. In the 19th-century debate, this is a direct challenge to classical laissez-faire assumptions that prosperity emerges naturally from free exchange and comparative advantage. List’s subtext: leave a developing nation to “pure” agriculture and open markets and you lock it into slow, linear gains while industrial powers race ahead through self-reinforcing growth.
Context matters: List wrote in a Germany still politically fragmented, trying to catch up to British industrial dominance. His emphasis on “concentration” hints at policy, not just description: tariffs, railways, and coordinated national institutions that make these feedback loops possible. He’s selling an agenda of nation-building through productive capacity, not consumer cheapness. The quote’s intent is to reframe protection and industrial policy as accelerants of capability - less a plea for isolation than a claim that interdependence at home must be built before interdependence abroad can be negotiated on equal terms.
The “geometrical” versus “arithmetical” contrast is doing rhetorical heavy lifting. It’s a way of insisting that national wealth can scale nonlinearly when a country builds the right complementarities. In the 19th-century debate, this is a direct challenge to classical laissez-faire assumptions that prosperity emerges naturally from free exchange and comparative advantage. List’s subtext: leave a developing nation to “pure” agriculture and open markets and you lock it into slow, linear gains while industrial powers race ahead through self-reinforcing growth.
Context matters: List wrote in a Germany still politically fragmented, trying to catch up to British industrial dominance. His emphasis on “concentration” hints at policy, not just description: tariffs, railways, and coordinated national institutions that make these feedback loops possible. He’s selling an agenda of nation-building through productive capacity, not consumer cheapness. The quote’s intent is to reframe protection and industrial policy as accelerants of capability - less a plea for isolation than a claim that interdependence at home must be built before interdependence abroad can be negotiated on equal terms.
Quote Details
| Topic | Business |
|---|---|
| Source | Help us find the source |
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