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Trade barriers (quotas and tariffs) are often used to protect domestic workers. Explain how the use of such barriers creates higher unemployment rather than protecting it.
The idea behind tariffs is fundamentally flawed and at ends with basic economic theory, as well as highly xenophobic. If a foreign firm can produce a good of similar quality at a lower price, then obviously that firm should be the one left to succeed, while the less efficient (in this case american) business would fail, and those resources would be reallocated to more efficient outcomes. If the government protects inefficient business through tariffs and quotas, then it is harboring inefficiency, which in the long run will lead to disparate gaps of quality and price between two countries. This will eventually become impossible to protect against with tariffs, and will lead to…

or unemployement for workers who have been too long working in an inferior industry, who thus haven’t developed transferable skills. Tariffs also deter economic growth in developing countries, thus sending the message that american workers are inherently more important, and even just plain better, than foreign workers. This is a vague form of racism that is more like xenophobia since it is doesn’t apply to specific races, but the entire rest of the world.



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