The_cost_of_Protectionism

The_cost_of_Protectionism - Mik Gadomski BSN-215 April 18,...

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Mik Gadomski BSN-215 April 18, 2006 The Price of Protectionism too High The Unites States of America likes to consider them-selves as a nation committed to unrestricted free trade. Representatives of United States trade claim that the U.S. economy is an open economy with very few import tariffs. It is true that the United States tariffs on the import of goods are low when compared to other nations, but we still have them. Studies have concluded that tariffs had cost U.S. consumers $32 billion per year during the 1980’s, and import protectionism has cost U.S. consumers $223.4 billion in 1996. Import tariffs had originally been imposed in the United States to protect U.S firms and employees from the effects of low cost foreign competitors. The reasoning behind the tariffs is that industries would go out of business and substantial unemployment would result. The studies by Gary Hufbauer and Kim Elliott found that while these tariffs saved 200,000 jobs they also cost the American consumers about $32 billion per year. The total cost of this protectionism after U.S. Treasury was added to the
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This note was uploaded on 01/17/2012 for the course ECON 101 taught by Professor Turnbull during the Spring '07 term at UCSC.

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The_cost_of_Protectionism - Mik Gadomski BSN-215 April 18,...

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