Protectionism

[joey88]

Bit of a nerdy one I'm afraid, do hope sombody could lend me hand with a few points or explanation?

Why do most countries still protect at least some of their industries although most trade theories conclude that free trade improves social welfare?

[jake-the-peg]

I think it's an issue of political pressure.

Try telling a 45 year old bloke who's just lost his job in the manufacturing industry in the face of foreign competition that "most trade theories conclude that free trade improves social welfare"

I'll hold your coat!

[Andyvon]

Free trade improves social welfare! Do you really believe that Joey? Almost all our manufacturing has disappeared to Eastern Europe or China. We have nothing left to trade with. The UK is going bust if you hadn't noticed and we have nothing left to recover with.

Any decent government puts it's own people and state first. It's a shame the British government did nothing to protect our power and manufacturing industries. Free trade indeed! They can stuff that!

[jake-the-peg]

Nah sorry Andy that's a pile or tabloid rubbish.

Despite the erosion of our traditional manufacturing base the UK is still the World's 7th largest manufacturing nation.

http://www.wisegeek.c...cturing-countries.htm

The UK is going Bust is yet another myth - we have a large deficit true but you have to look at it as a percentage of our GDP.

It's nothing compared to the defecit we've run in the past - particularly after wars

http://1.bp.blogspot....c-debt-since-1800.png

Does rather put it in perspective.

Don't be swayed by the politics - look at the numbers!

[woofgang]

joey, you said it yourself..."trade THEORY"

[society]

Protectionism?

[BillyBB]

Populism and bloomin' tabloid hype. And poorly educated client base electors.


Trade theories and actually proved correct when put into practice. One of the reasons Britain became economically more prosperous hundreds of years ago was because of free trade when compared with mainland europe.

[joey88]

Thank you very much everybody, has given me some things to think about indeed :)

Kind Regards Joe x