There's a nicely written article over at Real Clear Markets by John Tamny. He provides some valuable insight into protectionism, the real meaning of free trade, and the importance of capital movement for economic growth.
I like the way he presented this. Why are Americans so, dare I say, irrational, when it comes to free trade? Why is protecting the American institution of Chevrolet so important?
But, then again, what would be the implications of getting rid of all barriers (including subsidies and tax breaks)? Would we lose our manufacturing sector all together? Would there be enough jobs for those people who want to "work with their hands"--or would we ship them off too?
I don't think it would be all that dramatic. We'd probably still have a comparative advantage in some manufacturing areas where our technology was best.
I like the way he presented this. Why are Americans so, dare I say, irrational, when it comes to free trade? Why is protecting the American institution of Chevrolet so important?
ReplyDeleteBut, then again, what would be the implications of getting rid of all barriers (including subsidies and tax breaks)? Would we lose our manufacturing sector all together? Would there be enough jobs for those people who want to "work with their hands"--or would we ship them off too?
I don't think it would be all that dramatic. We'd probably still have a comparative advantage in some manufacturing areas where our technology was best.
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