ABSTRACT
A variety of other arguments has been advanced in support of protection on the grounds that it will enable a country to achieve some desirable social or economic objective. In nearly all these cases, an economist would argue that if society does indeed desire the stated objective, it can achieve it more efficiently in some other way. In other words, the economist would argue that a tariff is a second-best policy. In fact, we have already made this point regarding the infant-industry argument. We have observed that if a given industry were identified as a potential comparative-advantage industry worthy of being assisted in its infancy, a subsidy would be a better method than a tariff to provide that assistance. Nevertheless, the argument that a tariff is a second-best policy may be irrelevant because no first-best policy can be used. It may be beyond the administrative capacity of the country, or the country may be unable to collect enough taxes to pay subsidies. That same reasoning may apply to the arguments raised here.
