....I'm glad you're thinking, unfortunately you have the wrong thoughts. Protectionism is EXACTLY about restricting other nations from trading, in an ATTEMPT to support your own industrial base. Once a country imposes tarrifs on another country, the other country naturally retaliates. It just doesn't work, I can't believe you don't understand this. Apparently you come across as being smarter than you actually are, because you are completely hopeless. I never thought the day would come that I would have to argue against protectionism, I though it was just understood by everyone....my mistake. Now I'll await the classic line from Anaconda: "Why don't you come to NYC and say that to my face?"
Misthos, Thanks. I remember seeing this book when it first came out, thinking it was interesting and that I should add it to my tower of things to read, and somehow it fell through the cracks. Looks like I am going to have to order it or go to the library, as it is not on the Borders bookshelf. BTW, I wish I could respond to every single one of the posts made in this thread. Every single one has made me think.
That's a weird way of putting it. A better way would be: Protectionism is about competitively managing the way YOU trade in order to advantage your own industrial base.
And how exactly do you do that? By raising the tariffs on imports and/or subsidizing the cost of production? In other words, both of you are right.
Indeed. Which subsequently causes the countries you raised tariffs on to do the same to your country. In the end, everything costs more and everyone loses.
The article is saying that the government needs to provide incentives for research and development. What happened with all the research and development from previous years? Asia got the advantage of it far more than the United States did. The reward for research and development eventually comes from the manufacture and sale of products. The taxes and regulations in America discourages manufacturing. The United States needs to get rid of all excessive and unnecessary regulation. They also need to abolish all personal and business income taxes. Those taxes should be replaced with consumption and carbon taxes. The big problem in the United States is not a lack of spending but too much of it for useless consumer items and imported energy. You have to invest money if you want to get richer. It doesn't matter whether you invest that money at home or abroad as long as you get a good return on your investment. That return on your investments is what will make the country richer.
First of all, protectionism is not just tariffs. If you ever take enough Ritalin, maybe you can sit down & do a study on how Japan managed and still manages to sustain a significant industrial base while having a high cost of living. Second of all, I don't think you can afford the Greyhound bus ticket to NYC.
I think a start would be to not give tremendous corporate tax advantages to offshoring & outsourcing.
I'll add policies that allow companies that avoid US enviromental, worker safety and employee welfare costs by offshoring. "Free trade" is a economic utopia that has been overdone. Fast track trade agreements, etc, have damaged our economy. Too much, too quick. Protectionism is an ancient tool of trade policy and is discredited because it doesn't sit well with economists who can't consider the impact on society.