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Protectionism’s Essence
From Don Boudreaux Cafe Hayek.
"Here’s a letter to a college student in New Jersey:
Dear Mr. Sloan:
Thanks for writing.
You ask if my support of free trade is “too simplistic.” Aren’t
there “conditional situations and details” that I overlook when I oppose
protectionist arguments? Fair questions. My answer, though, is that
while I agree that reality is unavoidably more complex than are any
human accounts of it, the unconditional case against protectionism is as
sound as is, say, the unconditional case against armed robbery.
Suppose your next-door neighbor grows tomatoes and offers to sell
some to you. You reject his offer and instead buy tomatoes from a
seller who lives further down the street. Your next-door neighbor’s
prices might be higher than are those charged by the more-distant seller
or the quality of his tomatoes not quite to your liking. Whatever the
reasons, you don’t buy tomatoes from your neighbor.
Now suppose that your neighbor responds by pointing a gun at your
head to demand that you hand over to him a dollar for every pound of
tomatoes that you buy from the seller down the street. Would you think
that your neighbor’s actions are justified? Of course not.
But what if your neighbor tells you, as he stares at you down the
barrel of his gun, that he really needs the extra income that he’ll get
if you buy his tomatoes? Or what if your neighbor insists that the
seller down the street is selling tomatoes at prices that are unfairly
low? (“His uncle subsidizes his tomato growing!”) Or suppose your
neighbor asserts that he’s a more reliable supplier of tomatoes for the
neighborhood than is the seller down the street? Would any of these
“situations and details” justify your neighbor threatening violence
against you if you don’t pay to him a fee whenever you buy tomatoes from
someone else? Of course not - and this conclusion wouldn’t change if
your neighbor outsourced to a criminal gang the task of collecting from
you the fees your neighbor demands for your patronizing another seller.
Protectionism of the sort practiced by sovereign governments is
similarly unconditionally unjustified, for it differs in no relevant
ways from the armed robbery described above.
Sincerely,
Donald J. Boudreaux
Professor of Economics
and
Martha and Nelson Getchell Chair for the Study of Free Market Capitalism at the Mercatus Center
George Mason University
Fairfax, VA 22030
….
I could have added to the letter many other conditions, each equally
unsuccessful in justifying the next-door neighbor’s threats of violence.
For example, if a majority of the adults in the immediate vicinity of
your house vote to permit your next-door neighbor to threaten violence
against you for your not buying his tomatoes, such use of force remains
utterly unjustified."
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