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Smith and List obviously had different conceptions of political economy. In the short-term perspective, the classic model advocates “laissez faire” on the part of the state and suggests that a self-regulating economy based on short-term business creates the best conditions for wealth creation. In the long-term perspective, the Listian model emphasizes the “long-term development of factors underlying the production of values as a path to material prosperity over a historical epoch” (Winch, 1998, p. 369). According to Winch, Smith’s model was widely adopted in Anglo-Saxon countries, while List’s approach is applied in Germany, Switzerland, and Austria which are all countries that have a dual VET system.

In List’s view, VET includes all people who are necessary for the development of the work process. Unskilled workers have no ability to develop new products and are separated from the production process. These workers do not have an occupational tradition that is handed down over generations. He concluded:

Without a long-term perspective there are no incentives to upgrade skills or to nurture trades and crafts. (…) They need to retain their social and educational element and develop it in relationships with schools and colleges. The development of secondary technical education can then be associated with local and regional industries and with individual firms within the region in order to ensure a steady supply of skilled personnel to the industries and, hopefully, a supply of teachers to the schools and colleges. (List, 1991, pp. 200–201)