Sunday, August 4, 2024

Protecting infant industries doesn't help the economy

 It promises hope that a country can build their economy from the ground up and grow into a developed economy.

Protectionists in developing countries often argue that their economies are not resilient enough to compete in global markets yet and therefore require government intervention to survive.

Developing countries are likely not going to be able to produce cars as well as countries such as the United States or Germany.

These resources can be used elsewhere in the development of capital which may actually be useful in production processes in developing countries.

Due to the nature of individuals to better their lives, the uninterrupted free market will lead to the economy of a country reflecting how they can best produce value.

Protectionist policies prolong the duration from when a country grows from a developing country to a developed one.

Those in favor of wanting their country to be more prosperous ought to wish for a lack of government interference in the economy.

https://mises.org/mises-wire/protecting-infant-industries-doesnt-help-economy

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