The Origins and Purpose of The Economist: Promoting Free Trade and Economic Liberalism

The renowned publication The Economist, established in 1843, has long been a beacon for those interested in economic theory, policy, and market dynamics. In its early days, The Economist defined its mission and purpose through a detailed prospectus, outlining how it would serve as a platform for discussing, teaching, and promoting specific positions regarding economics and trade policies. This article delves into the origins, mission, and purpose of The Economist, highlighting how the newspaper has influenced discussions on free trade and economic liberalism.

Historical Context and Early Mission

James Wilson’s 1843 prospectus for The Economist laid the foundation for the newspaper’s purpose. Wilson announced his intention to create a newspaper that would not only provide comprehensive coverage of economic issues but also promote free trade principles.

Here is a detailed breakdown of the plan for the forthcoming weekly publication:

First: ‘Original leading articles in which free trade principles will be most rigidly applied to all the important questions of the day—political events—and parliamentary discussions and particularly to all such as relate immediately to revenue, commerce, and agriculture or otherwise affect the material interests of the country.’ Second: Articles relating more specifically to ‘passing commercial, agricultural, [and] foreign topics of practical interest, the state of revenue, foreign treaties, etc.’ Third: ‘An article on the elementary principles of political economy, applied in a familiar and popular manner to practical experience, especially in relation to the laws of price, wages, rent, exchange, revenue, taxes, and the relation between producers and consumers abroad and at home, proved and illustrated by the experience of this and other countries.’ Fourth: ‘Parliamentary reports giving at greater length all discussions peculiarly interesting to commerce and agriculture and especially involving the principles of free trade.’ Fifth: ‘Popular movements: A report and account of all popular movements throughout the country in favour of free trade.’ Sixth: ‘A summary of all the news of the week, the Court, the Metropolis, the Provinces, Scotland and Ireland.’ Seventh: ‘A careful and elaborate account will be given of the trade of the week with special notices of changes in fiscal regulations, state, and prospects of the markets, especially indicating the progress of stocks and consumption of imports and exports, the latest foreign news likely to influence future supply, the state of the manufacturing districts, notices of important new mechanical improvements, shipping news, an account of the money market, and of the progress of railways and public companies.’ Eighth: ‘Under this head, we will give frequent articles on improvements in agriculture, on the application of geology and chemistry, on new and improved implements and in every way to the utmost of our power assist that true and independent spirit which is everywhere rising among the best landlords and farmers to rely on the only safe support agriculture can have—intelligence, ingenuity, and perseverance instead of deceptive protection. We will give a general detail of incidents, the state of crops, markets, prices, foreign markets, and prices converted into English money. We have made an arrangement to communicate from time to time in some detail the plans pursued in Belgium, Switzerland, and other well-cultivated countries.’ Ninth: ‘In which we will furnish the earliest information respecting the trade, produce, political, and fiscal changes and other matter interesting, and particularly we will endeavour to expose the evils of restriction and protection and the advantages of free intercourse and trade.’ Tenth: ‘Law reports confining chiefly to such as are particularly important to commerce, manufactures, and agriculture.’ Eleventh: ‘Notice of books: Confined chiefly but not so exclusively to such as treat of the foregoing subjects including all treatises on political economy, finance, or taxation.’ Twelfth: ‘Commercial Gazette: Price currents and statistics of the week.’ ‘Correspondence, inquiries, etc.: Under this head we especially invite everyone to apply for information on all the topics herein enumerated which we do not furnish or which is not given in such details as may be required. We have made an arrangement by which inquiries shall be replied to in the next number if received by Thursday morning on all subjects enumerated in this prospectus:—POLITICAL ECONOMY AND COMMERCE, FOREIGN COMMERCIAL REGULATIONS, TARIFFS, RATES OF DUTIES, AND PORT REGULATIONS, EXISTING COMMERCIAL TREATIES, POINTS OF COMMERCIAL LAW, GENERAL STATISTICS connected with our trade for the last twenty years or earlier when they exist, AGRICULTURAL STATISTICS AND IMPROVEMENTS, and on other practical and economical subjects required.

Why The Economist is Called “The Economist”

The newspaper’s title, The Economist, clearly indicates its focus on economic issues. The explicit inclusion of ‘political economy,’ which referred to the study of the social science of production, exchange, distribution, and consumption of goods and services, suggests a deep and systematic analysis of economic policies and practices. The primary purpose was not merely to report on economic events but to advocate for the principles of free trade, emphasizing the importance of unfettered markets for global and local economic prosperity.

The Moral Zeal: Promoting Civilization through Free Trade

In the closing paragraph of the prospectus, Wilson expressed a profound belief in the transformative power of free trade and economic freedom. He stated, ‘If we look abroad we see within the range of our commercial intercourse whole islands and continents on which the light of civilization has scarce yet dawned and we seriously believe that FREE TRADE free intercourse will do more than any other visible agent to extend civilization and morality throughout the world—yes to extinguish slavery itself.’

This statement encapsulates the moral and ideological underpinnings that have guided The Economist over the years. By advocating for the expansion of free trade, The Economist aimed to spread not just economic doctrines but a vision of a more just and prosperous world where ethical progress and economic freedom go hand in hand.

In conclusion, the purpose of The Economist, as outlined in James Wilson’s prospectus, was to establish itself as a carrier of knowledge and values centered around economic liberalism and free trade. This mission remains a defining characteristic of the publication, making it a valuable resource for understanding economic history and the ongoing debates surrounding market principles and global economic policies.