The chapter explores the trade policies of Britain and France in the 19th century and their impact on economic development. It discusses the importance of domestic trade for fostering innovation and technological progress, contrasting the strategies of the two nations. The conversation also delves into the evolution of free trade practices and the political economy of Britain in the early 19th century.
John Nye of George Mason University talks with EconTalk host Russ Roberts about his book, War, Wine, and Taxes. The conversation covers the history of Britain and France's trade policy, why the British drink beer and why Ricardo's example of Britain trading wool for Portuguese wine is bizarre. Nye turns the traditional story on its head--he argues that France was more of a free trader than Britain and that the repeal of the Corn Laws was not the dividing line between Britain's protectionist past and free trade future. At the end of the discussion, Nye emphasizes the importance of domestic free trade for economic growth.