In his 1886 book, Protection or Free Trade, Henry George observes: "The protective theory has certainly the weight of most general acceptance. Forty years ago all civilized countries based their policy upon it."
What exactly did George mean by "Forty years ago"?
He was pinpointing the year 1846, the moment Great Britain abandoned protectionism and committed to global free trade by repealing the infamous Corn Laws.
This legislative act was one of the most transformative economic events of the 19th century.
What Were the Corn Laws? Let's dive in...
The Corn Laws were a series of highly restrictive tariffs and trade barriers on imported grain (called "corn" in Britain, refers to all cereal crops like wheat, barley, and oats) enforced from 1815 to 1846.
The Corn Laws did two things -
- Protect the elites
- Punish People
Their purpose was to keep the domestic price of grain artificially high, ensuring massive profits and maintaining the political power of British landowners.
By raising food prices, the laws increased the cost of living for the working poor and urban factory workers. This reduced their disposable income, reducing their ability to buy manufactured goods and, ironically, stifling Britain's own industrial growth.
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