Friday, 4 March 2016

Protecting Protectionism and Other Economic Inefficiencies

CIP invoked me in response to The WTO Just Ruled Against India’s Booming Solar Program?; I came.

I said:

So, you do think you're hard enough :-). Since you've quoted no facts, you won't insist on references in return.
I wouldn't be surprised if there are examples of nascent industries being protected by tariffs; but I'm pretty sure that most such "examples" aren't real; and that most tariffs imposed are imposed for stupid reasons, whatever pols may say or have said. its just too tempting for people. Most tariffs are just there to protect privileged and powerful incumbents; not for the good of the people.
Which is why your "nations are usually run not for the benefit of everyone, but for the benefit of elites" is so odd; its the elites that benefit from protectionism. As, I think, Smith warned you. So why are you in favour?
"might benefit more by damaging a rival" - is that a reference to dumping? Again, i think that's more imaginary that generally noticed; its more of a rallying cry for protectionist.
The correct tariff rate is zero. The good news: the correct strategy for all countries is to set this unilaterally; there is no need to wait for cooperation.

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