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Protectionism

Government policies of "shielding” local producers from foreign competition by impsosing trade quotas and tariffs to imported goods and services. Subsidies to local producers are also result of protectionist policies.

One of the most popular concept of protectionism is the protection of "infant" industry. The idea is to subsidize an industry to grow and develop markets until it grows big to support itself. In practice, however, "infant" industries don't have an incentive to grow and face competition. See public choice economics module for more details.

Richard Ebeling - Free Trade Versus Protectionism

Don Boudreaux - Free Trade vs. Protectionism (LearnLiberty)

Related Publications

ARCHIVE

"Protectionism" by Henry Hazlitt

SEPTEMBER 13, 2011 by NICHOLAS SNOW

MULTIMEDIA

A Critique of Protectionism

JULY 13, 2010

ARCHIVE

Obama and the Protectionist War Against the Poor

SEPTEMBER 16, 2009 by WILLIAM ANDERSON

Obama imposed new tariffs to please American union members, but the lower-paid workers in our country, however, will pay the deadly price, all in the name of "social justice" and "protecting American workers."

ARCHIVE

The Goal Is Freedom: Economic Nationalism, Enemy of the People

NOVEMBER 17, 2006 by SHELDON RICHMAN

"With the 2006 election, America appears to have reached the tipping point on free trade. . . . Anxiety, and fear of jobs lost to India and China, seems a more powerful emotion than gratitude for the inexpensive goods at Wal-Mart. The bribe Corporate America has offered Working America -- a cornucopia of consumer goods in return for surrendering U.S. sovereignty, economic security and industrial primacy -- is being rejected." So writes conservative commentator Patrick J. Buchanan in his post-election analysis. Buchanan may be right. Free traders -- those who reject the bogus idea of a "national economy" -- should be nervous. More . . .

Related Freeman Articles

ARTICLE

The Golden Age of Freedom Is Still Ahead

OCTOBER 03, 2012 by ANTHONY GREGORY

Free enterprise is often associated with the past, but the golden era of freedom and free markets is not now and it's not behind us. It is still ahead of us.

ARTICLE

Presumptuous Protectionism

Government Authorities Don't Understand International Trade

DECEMBER 01, 2005 by MANUEL F. AYAU

If someone gets caught selling somebody elses property,he goes to jail.What may be legally bought andsold in the market is limited to legitimate privateproperty acquired by ones own effort or through voluntaryexchange with others. Since legal transactions aresettled accounts, what is traded belongs to neither thegovernment nor the community. It is private property,and as such the owner can dispose of it at his sole discretion,limited only by other peoplesrights. Correct?

PERIPATETICS

The Unconstitutionality of Protectionism

Trade Restrictions Never Serve the General Welfare

APRIL 01, 2005 by SHELDON RICHMAN

BOOK REVIEW

Freedom to Trade: Refuting the New Protectionism

Well Written and Cogently Argued

SEPTEMBER 01, 1999 by CHARLES ROWLEY

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