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> consuming value to force your people to create less value That's the "spherical cow on a frictionless plane in a vacuum" of economics. Protectionism is pro
by avidiax 2y ago
> consuming value to force your people to create less value
That's the "spherical cow on a frictionless plane in a vacuum" of economics.
Protectionism is probably a good idea when the competitor is temporarily subsidizing various industries to build a permanent comparative advantage that can then be abused, either by being an effective monopoly, or by shaping your enemies to be logistically unprepared for war.
- ahmeneeroe-v2 2y agoExactly right and love how you phrased it. War is also one of those areas where the concept of economic value falls apart. I do totally agree with dragonwriter that it is vulnerable to corruption
- speleding 2y agoProtectionism does almost nothing to prevent that comparative advantage from being built unless all other consuming countries in the market also add a tariff. And most of them will not. Using the WTO to coordinate a response is a much more fruitful way in such a situation (but the WTO has been neutered by Trump).