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The US practices a huge amount of protectionism as well. The reason that the Americans are driving Japanese cars is that they were built in the US (which happe
by rtpg 11y ago
The US practices a huge amount of protectionism as well.
The reason that the Americans are driving Japanese cars is that they were built in the US (which happens because of the protectionism). Ford doesn't build cars in Japan. The end result is good for most people (consumers get more choice, jobs are still in the country).
- biokoda 11y agoYes and those japanese companies developed in their home turf and became strong enough to compete in the world market. The japanese government nurtured their industry. When it comes to internet based businesses this is not done. The end result is silicon valley dominating everyone else because that's where it all started and where the most money right now is.
- bduerst 11y agoYou're forgetting the bailouts for the American auto industry and the ghost town known as Detroit. Protectionism stagnates technological development because of the artificially stymied competition. Once the major players from hyper-competitive markets inevitably enter the protected market, then they outperform the resident industry there. Protectionism props up non-competitive markets, which is disruptive for citizens when they fall down.
- rtpg 11y agoThat's a good point. The auto industry might not be the best place for where you want to apply protectionism. But one pretty good usage is when the local industry is in its infancy. It's pretty well accepted that the IMF forcing so many African countries to drop agriculture-related tariffs has been among the biggest failures of modern economics.
- gaius 11y agoIndeed, also see https://en.m.wikipedia.org/w/index.php?title=KC-X&redirect=no#Restarted_competition https://en.m.wikipedia.org/w/index.php?title=KC-X&redirect=n...