The Historical School: From Friedrich List to the Social Market Economy. Zemfira Nazarova

forces: one of these latter prepares the next generation for production, another develops the morality and religious feeling of the present generation, a third contributes to the ennobling and elevation of the human spirit, a fourth saves the productive forces of his patients, a fifth secures the state of law, a sixth the social order, a seventh, finally, by his art and the pleasures he gives, excites the productivity of exchange values. If laws and public institutions do not directly produce values, they create productive forces; and Say is mistaken when he asserts that nations enrich themselves under every mode of government and that laws cannot create wealth.»60

      The highest form of development of productive forces, according to F.List, is manufactory, i.e. the development of manufacturing industry. According to F.List, it is in it that all material and social forces of the nation – the use of natural forces of the country, division of labor, increase in demand, market, increase in wages and welfare of the population, increase in profit, rent, etc. – find the highest development in comparison with previous economic forms. – find their highest development in comparison with previous economic forms. And the protectionist system is «the only means of raising the backward countries to the level of the nations that have preceded them, which by nature have not received any eternal monopoly of manufactory industry, but have only gained in time over other nations.»61