Summsrize the arguments for and against protective tariffs?

Answer 1

One positive thing about protective tariffs is that they protect jobs associated with manufacturing and distributing domestic goods and services. They are also beneficial to fledging companies who cannot compete with established foreign enterprises. One argument against the tariffs is that is artificially increases prices. Another argument is that it can lead to targeted countries imposing their own tariffs.

Answer 2

The South, having little industry to protect, opposed protective tariffs. Thomas Jefferson and James Madison feared national government with strong economic powers dominated by the wealthy class. They had a very different vision of what America should become.

- Chelsea Grate TTYLXOX

Answer 3

The arguments for protective tariffs are that it protects domestic goods and services from foreign goods and services. This protects specific jobs identified with the protected goods and services. Additionally, an argument can be made that a protective tariff can be used for fledgling enterprises that cannot compete with established foreign firms. A country may also want to use protectionist measures for national security or international prestige reasons. For example, let's say the US wants to be able to make tanks in the event of a war, therefore, they need the infrastructure to produce steel and automobiles in the event that trade and supply routes are disrupted in the case of international conflict.

The arguments against tariffs are that prices are artificially high and this hurts consumers. For example, if people could get their wheat a lot cheaper, say a couple dollars a bushel, from Another Country then more people could afford to eat bread, and the consumer could use that money on other things. However, if a government imposes a tariff, then the consumer would have to spend more money on bread and would have less money to buy other things.

Another problem with tariffs is that the targeted countries may impose similar tariffs on other goods. These tariff wars significantly hamper trade and although not the cause of the Great Depression, caused the great depression to be great (not my quote...).

Another problem with tariffs is that it keeps inefficient production tied up in areas that might not be the best place for those resources. For example, let's say your country is really good at making computers, but you have a protective tariff that allows your country to make widgets at the cost of consumers. If those tariffs would be removed, your country would then produce computers more efficient and consumers would get cheaper widgets and therefore everyone is happy.

Answer 4

it means to protect locally firms thereby causing people to patronize in locally products or goods. In a nut share, it will create competition between impoted goods and local goods