In a free global economy, the primary sectors in the US and the EU would not have a right to exist in their present form. It is only because of protectionist’ measures that those economies are able to shield themselves form the world supply and its price, and that their flourishing agricultural sector is able to sell its goods at the high price observable for instance in supermarkets in Scotland. This post will examine four such measures and their impact on domestic consumer welfare, and conclude that consumers are overall worse off with these measures in place. Yet, I finish with a positive evaluation of the reasons behind protectionist’ thought in Europe and the United States.
The Folly of Protectionism (full version – pdf)