Speaking of simple minds, how come protectionists never consider the adverse effect of a tarrif on steel (for example) on companies that consume steel?
By Thomas Sowell
In one of his early economics courses as a Harvard undergraduate, Thomas Sowell was asked by the professor to say what policy he advocated to deal with some major issue. Sowell eagerly replied, giving a standard interventionist prescription that he figured would impress the professor. (In his youthful days, Sowell was a leftist.) The professor, Arthur Smithies, then surprised Sowell by asking, "And then what will happen?" Sowell stumbled around for an answer to the unexpected question, and after he gave it, Smithies again asked, "And then what will happen?"
From that encounter, Sowell drew a crucial lesson: Don't stop thinking at stage one. Professor Smithies, to whom the book is dedicated, had taught him that a good economist doesn't simply look at the immediate and obvious consequences of an action, but tries to think through all of the long-run consequences as well. Unfortunately, most Americans are not good economists and therefore are easy prey for crusading politicians who say, "Elect me and I'll pass laws to ensure good education (or housing, or medical care, etc.)."