Phil Gramm and Donald J. Boudreaux write in The Wall Street Journal about the price of protectionism.
- Policymakers from both sides of the aisle are embracing protectionism and tariffs in an attempt to bolster economic growth and increase domestic jobs.
- These policies increase costs for consumers and hurt the competitiveness of favored industries in the long run.
- Green protectionism, meanwhile, delays the global adoption of clean technologies (climate change is a global issue) by weakening customer bases and production in emerging economies.
- To lower costs for consumers, accelerate economic growth, and increase the adoption of clean technologies policymakers should embrace free trade and open markets.
“Protectionism and industrial policy misallocate resources and reduce economic efficiency. When firms in a free market produce outputs that consumers won’t buy, the money entrepreneurs and investors lose is their own. When protectionists and industrial-policy planners make mistakes, they often mask them with more subsidies and tariffs—at taxpayers’ expense.”
Read the full article here.
The views and opinions expressed are those of the author’s and do not necessarily reflect the official policy or position of C3.
