December 15, 2018

THE POINT OF AN ECONOMY IS TO CREATE WEALTH:

The Reasons Protectionists Want to Keep the Economic Pie From Growing Are Half-Baked (Amanda Snell & Patrick Tyrrell, December 14, 2018, Daily Signal)

Many factors contribute to economic growth, including trade liberalization and increased labor productivity. These principles are at the heart of a free-market economy, which lends itself to individual advancement.

Economist John V.C. Nye has written:

In the most successful countries, the average citizen now enjoys a material standard of living that would have made the greatest king of [200] years ago turn green with envy.

But despite incredible gains in overall wealth, some argue that certain industries need government protection, even in advanced economies, such as that of the United States.

One of the most frequently heard arguments is that American manufacturing--which is said to have peaked around 1980 and undergone an overall decline since--needs tariffs to compete against manufacturers in other countries.

A quick look at the facts, however, shows that the U.S. manufacturing sector has become bigger and more productive as trade has expanded, although major advancements in technology may have crimped demand for low-skilled workers in the sector.

Instead of focusing on protecting certain sectors from foreign competition, we should pursue economic freedom, enabling further innovation.

Domestic and international economic development are not mutually exclusive, and in a free market, declining sectors are replaced organically by other efficient industries.

Innovation creates value for producers and consumers, and an unfettered economy sets the stage for these mutually beneficial transactions.

Jonah Goldberg had an excellent discussion on this topic with Tyler Cowen, Episode 75: Stubbornly Attached (HOSTED BY JONAH GOLDBERG, December 13, 2018, The Remnant)

What is a Crusonia plant? Where did prosperity come from? Can Jonah get a laconic libertarian to digress? Tyler Cowen, George Mason University economics professor and author of Stubborn Attachments, joins the Remnant to answer these and other questions.



Posted by at December 15, 2018 8:19 AM

  

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