ECONOMIC NATIONALISM

Grey River Argus, 16 October 1936, Page 4

ECONOMIC NATIONALISM

World-Wide Movement A NEW |E EVIEW. The substantial measure of recovery which the United Kingdom enjoys is limited to a very large extent to the home markets (remarks Ihe London correspondent of the New Zealand “Accountants' Journal’') A recent contribution to a consideration of this phase of economic nationalism recently been made by Prof. Robbins (University of London), who draws atention to the .fact that such nationalism is no new development, but that there tire precedents for almost all the measures which are now affecting the prosperity of world trade. What is new, however, in the present situation is not the nature of the measures now prevalent, but the extent of the area over which they obtain. Prof. Robbins explains that this development of econmie nationalism cannot wholly be attributed to the depression as cyclical fluctuations were, in evidence long before nationalism became acute. .Part of the present development, he considers, is due to fear of war, par; to the growth of socialism and part merely to the influence of vested interests. But, quite apart from' the initialing cause, the fact is that then? is a sort of snowball principle about them all, which, once :i certain point has been reached, necessarily involves economic activiiv. Lor :i long ‘.’me tariffs may continue to grow without causing much dislocation. 'But sooner or later the tariff as such, becomes inadequate and gives way to more effective, measures, the quota ami license system. For a long time small controls may be imposed on the machinery of investment. Bur. there comes a time when control, to be effective, must be carried much further. Effectively to keep capital at. home, not only the machinery of new issues but the stock markets and the [foreign exchanges must be controlled. •Similarly with money, for ;i time, it is possible to make small departures from the international trend within the framework of a world system. But, beyond a certain point, the attempt to run with the hare, and hunt with the hounds breaks down. It is a. ease for thorough-going investigation or a return to an international system'. The net. effect of economic national' ’

ism is a loss of potential wealth, leading to a reduction in the general standard of living and, in fact, instead ! of attaining the security and other 1 benefits wh'eh the exponents of econo- < mic nationalism anticipate, in the fin- 1 al analysis, the eventual outcome will I be “impoverishment, insecurity and war.” i