Free Republic
Browse · Search
News/Activism
Topics · Post Article

To: Toddsterpatriot
I don't think you are capable of understanding trade and history. Try reading and opening your mind up.

The colonies could not protect fledgling industries by putting tariffs on British imports. As soon as the war was won and the Constitution adopted the first thing the first congress did was pass the tariff act which promoted/protested US industry, paid for the war and made the USA a major player in the industrial revolution of the 19th century instead of being left out if it.

214 posted on 02/13/2016 4:43:22 PM PST by central_va
[ Post Reply | Private Reply | To 210 | View Replies ]


To: central_va
The colonies could not protect fledgling industries by putting tariffs on British imports.

Which fledgling industries still need protection in 2015? Nano-tech?

222 posted on 02/13/2016 4:51:24 PM PST by Toddsterpatriot ("Telling the government to lower trade barriers to zero...is government interference" central_va)
[ Post Reply | Private Reply | To 214 | View Replies ]

To: central_va
Carrier is not a "fledgling" industry . . . making Milton Friedman's words ring ever so truly:

In all the voluminous literature of the past several centuries on free trade and protectionism, only three arguments have ever been advanced in favor of tariffs that even in principle may have some validity.

[]

The second is the "infant industry" argument advanced, for example, by Alexander Hamilton in his Report on Manufactures. There is, it is said, a potential industry that, if once established and assisted during its growing pains, could compete on equal terms in the world market. A temporary tariff is said to be justified in order to shelter the potential industry in its infancy and enable it to grow to maturity, when it can stand on its own feet. Even if the industry could compete successfully once established, that does not of itself justify an initial tariff. It is worthwhile for consumers to subsidize the industry initially--which is what they in effect do by levying a tariff--only if they will subsequently get back at least that subsidy in some other way, through prices lower than the world price or through some other advantages of having the industry. But in that case is a subsidy needed? Will it then not pay the original entrants into the industry to suffer initial losses in the expectation of being able to recoup them later? After all, most firms experience losses in their early years, when they are getting established. That is true if they enter a new industry or if they enter an existing one. Perhaps there may be some special reason why the original entrants cannot recoup their initial losses even though it may be worthwhile for the community at large to make the initial investment. But surely the presumption is the other way.

The infant industry argument is a smoke screen. The so-called infants never grow up. Once imposed, tariffs are seldom eliminated. Moreover, the argument is seldom used on behalf of true unborn infants that might conceivably be born and survive if given temporary protection; they have no spokesmen. It is used to justify tariffs for rather aged infants that can mount political pressure.

link


225 posted on 02/13/2016 4:53:11 PM PST by 1rudeboy
[ Post Reply | Private Reply | To 214 | View Replies ]

Free Republic
Browse · Search
News/Activism
Topics · Post Article


FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson