Protectionist Trade Policies: A Survey of Theory, Evidence, and Rationale
Protectionist pressures have been mounting worldwide during the 1980s. These pressures are due to various economic problems including the large and persistent balance of trade deficit in the United States, the hard times experienced by several industries, and the slow growth of many foreign countries. Proponents of protectionist trade policies argue that international trade has contributed substantially to these problems and that protectionist trade policies will lead to improved results. Professional economists in the United States, however, generally agree that trade restrictions such as tariffs and quotas substantially reduce a nation’s economic well-being.