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Exactly, perhaps a little bit of history, Bastiat's essay: A PETITION From the Manufacturers of Candles, Tapers, Lanterns, sticks, Street Lamps, Snuffers, and

• ericd 15y ago
  Great read. There is a subtle but important difference here in that it's an artificial advantage (government subsidies), and potentially a short-term one, versus that permanent natural foreign production advantage proposed in the article. The oranges in that story would always be half the price. There's no fundamental reason that these will stay under cost, and indeed, it seems unlikely that they would. In the long run, it may be cheaper or more beneficial to develop a domestic industry in this, with all of the benefits that that comes with, even if the upfront price is higher. It doesn't seem like a good idea to let foreign goods be subsidized to the level where it will kill your domestic industries and reduce your country's ability to operate independently, especially if that's one of the goals of the subsidies.