Monday, January 08, 2007

Competition, Progress and Protectionism

From Don Boudreaux at Cafe Hayek: "Arguing that trade has "losers" is simply another way of saying that competition has "losers." Anyone who questions the merits of trade because they can identify persons harmed by it is someone who questions the merits of competition.

Compared to the number of people who think it wise and sensible when the pundit suggests that trade be limited as a means of fostering prosperity, fewer people would think it wise and sensible if this pundit instead suggested, explicitly, that competition be limited as a means of fostering prosperity."

MP: I would argue that you could substitute "progress" or "advances in technology," for "competition" above, and Don's argument would be the same. Progress and technology have losers, i.e. thousands of jobs are lost because of progress and technology. Would anybody ever propose legislation to prevent, elminate or stall progress and technology because they eliminate some jobs? Probably not. Why then support tariffs and protectionism to prevent the loss of some jobs?

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