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  • Essay / Free trade or protectionism - 720

    The debate between protectionism and free trade is a question that has been debated for centuries in all countries. The main question is: are protectionist policies bad for America? The answer would be “no”. This is because, while international corporate competition benefits individual consumers, it harms the U.S. economy. This in turn means that America is losing money that can be an income for someone else or a source of investment that contributes to the growth of the country. The purpose of a protective tariff is to impose a tax on foreign products imported into a country as such. a means of protecting national industries from international competition. The disadvantage that has been mentioned is that this is detrimental to the consumer since they are not given the opportunity to buy the cheapest foreign products. The benefit of tariffs is that more money goes into the economy imposing the tariffs, in this case it's America. This refutes Rothbard's claim that international tariffs are as absurd as interstate tariffs; Interstate tariffs are absurd because they don't help the national economy like international tariffs do. The argument for free trade focuses on consumer benefits, but these benefits only last temporarily. Based on the circular flow of economics, it is known that one man's expenses constitute another man's income. This spending multiplies throughout the economy as new income generates more revenue, further increasing the country's GDP. This means that every purchase within a country makes the country better off than before. Although it is difficult for a single individual to see the benefits, it has a very significant effect on the entire country... middle of paper ... dependency comes from maintaining domestic industries. In order to support these domestic industries, the American people must be loyal to their domestic economy. This comes from the use of protective tariffs to encourage consumption and investment in the country. In conclusion, the use of protective tariffs has numerous advantages which confirm the answer to the question asked above. The most obvious advantage of using a protective tariff is that it encourages domestic spending which can further multiply throughout the economy. The resulting increase in investment creates long-term economic growth that promotes long-term improvements in the economy. They also encourage foreign manufacturers to improve their products in order to increase their sales abroad. Ultimately, it leads to economic autonomy which gives a country more control over its economy..