Free Trade vs Protectionism

Free Trade vs. Protectionism


The argument for so-called protectionism (called “fair trade” by some) may at first sound appealing. Supporters of protectionist laws claim that keeping out foreign goods will save jobs, giving ailing domestic industries a chance to recover and prosper, and reduce the trade deficits. Are these claims valid?
Classical liberal philosopher John Stuart Mill observed in the last century that “Trade barriers are chiefly injurious to the countries imposing them.” This statement is as true today as it was then, and there are many reasons for this including higher lost jobs, higher prices, and higher taxes. These are some of the critical reasons why protectionism can harm countries instead of helping them. Free trade can be very beneficial to both trading countries. This is because of three different aspects: Comparative advantage, economies of scale, and increased competition. The case for the right of citizens of all countries to trade...