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Not innately. However, protectionism strongly encourages modeling the economy in adversarial and conservationist (status quo-preserving) terms. It's the same lo
by vezzy-fnord 11y ago
Not innately. However, protectionism strongly encourages modeling the economy in adversarial and conservationist (status quo-preserving) terms. It's the same logic that people use when talking about how immigrants are crowding them out of the labor market. There's a kernel of truth, but taken too far it becomes destructive to pursue.
The end result of protectionism taken to its conclusion is autarky, which has some highly notable and horrible failures, especially in more contemporary times. The protectionist agent is, of course, the state. And contrary to many social critics who shriek of "market failures," there are also corresponding government failures that are often far more disastrous, as public choice theorists have written on the subject, for instance. This along with the problems of state power that we all know too well.
Autarkies necessarily have high levels of central planning that lead to such issues as undersupply, allocative inefficiencies from distorted signaling, more frequent rationing, shortages incurred by price controls and high amounts of idle or unproductive labor with possible frantic/erratic production cycles ("employed unemployment").
- SixSigma 11y agoFree trade traps agrarian societies into eternal peasantry enforced by the WTO and clinging on to the Ricardian comparative advantage of nations.
- AnimalMuppet 11y agoYou're very efficiently generating pithy sound-bites, but I'm not sure that you're either listening or thinking...
- SixSigma 11y agoI leave the deep thought to the professionals http://www.freetradedoesntwork.com/ http://www.freetradedoesntwork.com/
- AnimalMuppet 11y agoYeah... um... you might do better with a bit more range in the professionals whom you allow to do your thinking for you...
- SixSigma 11y agoGosh, yes, thanks for the advice. I'm looking forward to reading my second book. I'm hoping it's about why Spanish people are really good at making shoes.
- deleted 11y ago[deleted]