My first review for #bookstr in 2026 is the thoroughly enjoyable “The National System of Political Economy” by Friedrich List.

Written in 1841, it provides an excellent snapshot of thought in his day. His background (itself very interesting) shines through his ideas, and reading his thoughts on the future of the new nation of Texas, matter-of-fact views on slavery, talk about cloth manufacturing like people discuss Nvidia today, international competition, and his disputes with Adam Smith’s laissez-faire is very interesting.

List belongs to the Historic School of Economics which no longer really exists in Western thought since the Methodenstreit out of which Menger birthed the Austrian school.

Book One is List’s history of a bunch of important nations and I found this particularly fascinating. His discussion of the Hanseatic Leagues and the interplay with a burgeoning England is super interesting, and about the ebbs and flows of Portuguese, Dutch and French power, and his The Germans section is simply excellent. History buffs with an interest in economics would enjoy Book One as a standalone, it’s truly excellent.

If I was to sum up List’s main arguments I’d say it’s twofold. One, he takes issue with Adam Smith not differentiating between agricultural and manufacturing productions. Smith’s classic example of Scotland growing grapes for wine says List, is stupid; no-one thinks they should - they should trade for agricultural products their nation is unsuited for. But they should make that trade by developing higher order manufacturing, not by trying to trade commodities for commodities. He focussed a lot on this split.

Which brings us to his second point that nations are at different stages of development - it’s fine for Britain (and Smith) to argue for free trade because they stand to benefit most from it being the most developed country on Earth at writing, but if other nations hope to compete then they must protect infant industry by way of tariffs and balancing trade such that they can develop enough to eventually compete.

This thinking is what has dominated Asian economics; it’s why China are where they are, it’s why Worst Korea and Japan have conglomerates like Hyundai and Mitsubishi.

And it’s also behind Trump’s hard-ons for tariffs in 2025 (albeit Trump’s influence is from American thinkers influenced by List; not List himself).

So just from an understanding of what’s happening in the world today, I’d highly recommend this book. You’ll gain an appreciation for the economic thinking influencing modern policy makers on protectionism, and a more nuanced way to think about laissez faire which I think is well worth considering.

If you want to read beyond Austrian school economics and broaden your perspective, this would be worthwhile to at leash challenge your own notions.