This blog consists of comments from my real blog, http://scienceblogs.com/stoat/, which I don't want to publish there.
Plus some other stuff convenient to place here.
And its becoming a convenient place for me to dump my comments on other blogs so I can find them again.
Friday, 4 March 2016
Protecting Protectionism and Other Economic Inefficiencies
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.