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by antidesitter 2783 days ago
There is an overwhelming consensus among people who study the subject that protectionism has a negative effect on economic growth and economic welfare [1][2][3][4][5][6]. Even interventionist economists like Paul Krugman strongly agree, and they have tried to explain why free trade is a good thing to an ignorant public. It is shameful that so many people feel obligated to opine strongly on a subject which they don't understand, causing bad policies to be enacted.

Protectionism makes society worse off. The policy you are proposing would make the world poorer.

[1] https://www.nytimes.com/2015/04/26/upshot/economists-actuall...

[2] https://research.stlouisfed.org/publications/review/2004/09/...

[3] https://www.jstor.org/stable/2117691

[4] http://www.igmchicago.org/surveys/free-trade

[5] http://www.igmchicago.org/surveys/import-duties

[6] http://www.igmchicago.org/surveys/trade-within-europe

2 comments

>There is an overwhelming consensus among people who study the subject that protectionism has a negative effect on economic growth and economic welfare

Yes, establishment economists all agree on establishment practices are good and want more of them. News at 11.

It's not like economics is a science the way physics or chemistry are.

> Yes, establishment [insert field here]s all agree on establishment practices are good and want more of them. News at 11.

Can you address what I said with something more substantive? Also, what counts as "establishment"?

> It's not like economics is a science the way physics or chemistry are.

Of course it's not. Yet this is an issue where you get as close to certainty as you can in any social science.

> Yes, establishment economists all agree on establishment practices are good and want more of them. News at 11.

It's not the "establishment", economists from all sides disagree over almost everything except for this.

That's how you know there's something to it.

Touting the "free market" is the basis of their being employed. Of course they agree in this, they just disagree on how they go about it.
> Touting the "free market" is the basis of their being employed.

How so?

> Of course they agree in this

Agree on what?

It sounds like you're grasping at straws here.

I think everyone agrees that outsourcing work to third world economies creates immense wealth in first world economies. We also know that burning fossil fuels is the cheapest way to make useful heat. That doesn't mean it doesn't have a lot of negative unintended consequences.
> I think everyone agrees that outsourcing work to third world economies creates immense wealth in first world economies.

It also creates wealth in those third world economies. In fact, they benefit the most.

> We also know that burning fossil fuels is the cheapest way to make useful heat. That doesn't mean it doesn't have a lot of negative unintended consequences.

Can you explain why you think this comparison is relevant?

Hollowing out the lower/middle class in those first world economies and forcing people into social welfare programs is a big unintended consequence here.
Yes, it transfers wealth from the extremely well off (by global standards) first world middle class into building up the third world middle class.
To be fair, it almost entirely transfers wealth to the extremely well off by any standards first world upper class, everything else is a rounding error. Outsourcing is colonialism by another name.
> To be fair, it almost entirely transfers wealth to the extremely well off

Wrong. Free trade benefits the poor the most. It is responsible for massive reductions in poverty at the global level, and is critical to the economic growth of developing countries. Trade barriers (particularly in agriculture) are a major source of harm to the world's poor:

http://www.worldbank.org/en/topic/trade/publication/the-role...

I encourage you to open your mind on this subject and accept reality rather than hang on to a view that is fundamentally incorrect.

> Outsourcing is colonialism by another name.

What do you mean by "colonialism"?

>I think everyone agrees that outsourcing work to third world economies creates immense wealth in first world economies.

Not everyone, just the 10% that benefits from that wealth (and is more likely to be reading HN).

The rest wonder where their middle class safety and working jobs have gone, and opts for Trump, Brexit, and other such approaches.

> just the 10% that benefits from that wealth

That's not true, as I've already pointed out in my comments. The fact that you keep covering your ears and pretending this is not the case doesn't change reality.