Economics 2124A/B Lecture Notes - Lecture 10: Human Capital Flight, Protectionism
11 Dec 2017
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With free trade, the consumers will gain (more choices, prices will be lower due to competition, not restricted to domestic productions) Protecting american jobs (might be actually losing jobs or not gaining any because prices will increase: this is a goal, consumers lose use to higher prices and/or less choice (the tariff/no import will raise price) Likely increase in government expenditure (through subsidies perhaps or lower tax collected due to lower tax rates) Revenues fall, profits fall, tax revenues fall. Less efficiency leads to price increasing (consumers lose again) Those who kept the jobs and firms still in operation a(cid:374)d (cid:449)ould(cid:374)"t (cid:271)e (cid:272)o(cid:373)petiti(cid:448)e internationally are the ones that will win (those who keep jobs, those industries that (cid:449)ere(cid:374)"t competitive internationally) Goal of us is to increase export: that is dependent on foreign country income. Income decreases: buy less goods from the us. Unstable economy: civil unrest, possibly violence or crime can increase. More us citizens with travelling to ldcs.
