Protectionism and the Destruction of Prosperity

Protectionism and the Destruction of Prosperity
Murray N. Rothbard

                  Protectionism is the economic policy of restraining trade between states, through methods such as tariffs on imported goods, restrictive quotas, and a variety of other government regulations designed to discourage imports, and prevent foreign take-over of native markets and companies.
                  By raising taxes on imported goods or imposing limits the choice of the consumer is restricted. Also, both the cost of the goods and the cost of doing business increase. Under protectionism you might end up poorer because protectionist laws reduce consumer spending power by destroying jobs.
                  Protectionist laws force us to pay more taxes on imported goods, but also raise general taxes as well. Somebody has to pay the bureaucrats that work in tax departments too.
                  However, there are some that can be considered winners of the protectionism. Those who gain from protectionist laws are special interest group such as big corporation, unions and farmer’s group (the ones whom want to get away with charging higher prices and getting higher wages than they could expect in a free marketplace).
                    There are, of course, losers of the protectionism – the ordinary consumers. Their freedom is being trampled into dust by these laws, and they are literally being robbed, through taxes and higher prices.
                    We all know that trade should be beneficial for both parties; otherwise they would not engage in the exchange. Protectionists try to deprive some of us of products we desire so that we will have to turn to inefficient firms.
                    Fair Trade is an organized social movement and market-based approach that aims to help producers in developing countries and promote sustainability. A common protectionist would say that is „unfair” for an American firm to compete with a Taiwanese one which needs to pay only one...