WHAT SHOULD THE NATION PRODUCE? 7 1 



is viewed from the standpoint of maximum efficiency in produc- 

 tion for the nation as a whole. 



But maximum efficiency in production may not be the sole 

 aim of a nation. National defense may seem at times to be so 

 important as to make it desirable to reduce the efficiency of 

 production in order that the nation be self-sufficing to an 

 adequate degree. This may be the most profitable thing to 

 do with a view to meeting the national needs in times of inter- 

 national strife when international commerce is extremely 

 hazardous. 



The problem then becomes that of ascertaining to what ex- 

 tent a nation should produce everything it needs as nearly as 

 possible and to what extent it should produce those articles 

 which enable it to secure the maximum free competitive values 

 and depend upon international trade to provide the great 

 variety of articles which can, in times of peace, be secured 

 from abroad more cheaply than they can be produced at home. 

 The answer to this question depends upon the national ideal 

 and the progress of civilization in the direction of protecting 

 international trade. 



To the extent that civilized nations desire to live in peace 

 with one another, making mutual concessions from time to time 

 and recognizing one another's rights and the mutual benefits 

 to be derived from the exchange of commodities, advantage 

 may be taken of the benefits of division of labor among nations 

 and the resulting international commerce. On the other hand, 

 if strong nations are unwilling to enter this world comity, 

 and insist on extreme nationalism and stand ready to encroach 

 upon the rights of others upon land and upon sea, it may be- 

 come necessary to adopt an economic policy very different from 

 the one which would be most productive if a world economy 

 were practicable. 



Under the system of extreme national economy, where the 

 nation must be self-sufficing in the primary necessities of life, 

 industry, and war, many of the advantages of modern civiliza- 

 tion may be lost. Luxuries may be secured from abroad in 

 times of peace and dispensed with in times of war. A national 



