Meditations and Learnings

Meditations and Learnings

When Are Trade Restrictions Justifiable?

Many economists believe tariffs and other protectionist policies to be harmful to a country’s economy. These same economists often recognise the potential benefits in temporarily protecting “infant industries” that cannot initially compete with long-established foreign competitors. Another area in which free trade advocates acknowledge the need for restrictions in the trade of resources essential to national defence. We must be careful with what we deem “essential”, as interested groups can stretch the term liberally.