Economics Week 34 Protectionism

Prompt: “Is it logical for someone to affirm faith in the free market and also protectionism?”

Protectionism is the policy of restricting imports from other countries though tariffs, taxes, and other government regulations. Free trade is as it sounds, trade without restrictions. Just stating what these two economic policies are shows how different they are, and how one cannot truly exist at the same time as the other. Protectionism is usually put in place to protect domestic business’s from the competition created by foreign production. Domestic producers make more money through scarcity, but at the end of the day consumers suffer. As I stated in some of my previous essays trade with other countries makes both countries wealthier, and reduces scarcity which makes goods less expensive. Consumers are able to afford more than they would have been able to if their only choices were domestic producers.

In conclusion it is illogical for someone to advocate for both free trade and protectionism, because the two policies go directly against each other. Faith in the free market means faith in no governmental trade restrictions, while faith in protectionism means faith in restrictions.

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