Tariffs and Protectionism
We’ll look at the costs and consequences of tariffs, quotas, and protectionism. How do tariffs affect consumers? What about producers? Who wins and who loses? Find
We’ll look at the costs and consequences of tariffs, quotas, and protectionism. How do tariffs affect consumers? What about producers? Who wins and who loses? Find out with this video.
We’ll apply the fundamentals we learned in the supply, demand, and equilibrium section of this course to real-world examples — like that of protectionism in the U.S. sugar industry — to determine lost gains from trade or deadweight loss, the tariff equilibrium vs. the free trade equilibrium, and the value of wasted resources as a result of tariffs.
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If there is a huge disparity in production costs (largely labor) in the US vs much of the developing world, isn't the implication that employment in the US (or any developed nation) will drop, or wages will drop dramatically? Essentially, short of a few items with technical barriers to being produced elsewhere, anything that CAN be produced elsewhere WILL be produced elsewhere. Combined with mass immigration, this then becomes a situation where any job that CAN be done by an immigrant at a lower wage WILL be. Where does this leave lower skill US workers? My conclusion is that they become socialists who simply vote themselves the wages and benefits they are no longer earning through jobs.
What about the other costs of free trade such as higher domestic welfare spending? What about the non-monetary costs such as dependency on foreign sources? This has led to wars (Japan-steel and oil, US-Gulf War I) with their immense costs. What about the "hidden" costs of free trade such as the maintenance of huge navies to protect trade routes (British Empire, USA today).
Finally, I must ask, given global trade's huge technological advances, what jobs exactly will the 50% of US workers who have sub 100 IQs do for a living? And what do you expect these jobs to pay relative to the old economy of say 40 years ago?