The American Indians

The American Indians A high degree of self-sufficiencyis possible, of course. The American Indians approached it; the early Amer ican settlers practiced it of necessity. But the level of living at that time was very low. Before the White Man came, the area that is now the United States supported fewer than 1,000,000 American Indians-and in a very meager fashion, despite the vast stores of natural re sources. Some may argue that self-sufficiency is a more satisfying way of life than we now enjoy; that, however, 48 is not an economic question, and it is outside the scope of this discussion. Free exchange-whether between individuals, villages, states, or nations-makes for a higher level of living. Tariffs and other trade restrictions force people toward self-sufficiency and result in a lower level of living. Tariffs Lower Level of Living Bastiat tells a little story which illustrates how tariffs lower the level of living: "A poor vine-dresser of the Gironde had trained with fond enthusiasm a slip of vine, which, after much fatigue and much labour, yielded him at length a tun of wine; ... 'I shall sell it,' said he to his wife, 'and with the price I shall buy stuff sufficient to enable you to furnish a trousseau for our daughter.' The honest countryman repaired to the nearest town, and met a Belgian and an Englishman. The Belgian said to him: 'Give me your cask of wine, and I will give you in exchange fifteen parcels of stuff.' The Englishman said: 'Give me your wine, and I will give you twenty parcels of stuff; for we English can manufacture the stuff cheaper than the Belgians.' But a Customhouse officer, who was present interposed, and said: 'My good friend, exchange with the Belgian if you think proper, but my orders are to prevent you from making an exchange with the Englishman.' 'What!' exclaimed the countryman; 'you wish me to be content with fifteen parcels of stuff which have come from Brussels 49 when I can. get twenty parcels which have come from Manchester?' 'Certainly; don't you see that France would be a loser if you received twenty parcels in stead of fifteen?' 'I am at a loss to understand you,' said the vine-dresser. 'And I am at a loss to explain it,' rejoined the Customhouse official; 'but the thing is certain, for all our deputies, ministers, and journalists agree in this, that the more a nation receives in ex change for a given quantity of its products, the more it is impoverished.' The peasant found it necessary to conclude a bargain with the Belgian. The daughter of the peasant got only three-quarters of her trousseau; and these simple people are still asking themselves how it happens that one is ruined by receiving four instead of three; and why a person is richer with three dozens of towels than with four dozens."