ECON 201 Lecture Notes - Lecture 3: Tyler Cowen, Free Trade, Counterargument
Document Summary
Free trade lowers the price of textiles. How technology differs; society"s social and moral values (gmo"s, even though it might be more efficient for a country they won"t adapt due to moral values) More often than not, tariffs and trade protection are abused for purposes of corruption and special interests (tyler cowen) Evidence: in fiscal 2013, americans consumed 12 million tons of refined sugar with the average price for raw sugar 6 cents per pound higher than the average world price. 24 billion pounds of refined sugar use at a 6 cent per pound u. s. premium, americans paid an unnecessary 1. 3 billion extra for sugar. That is equivalent to more than 310,00 per sugar farm in the united states. Rodrik argues that protectionism or industrial policy has certain benefits in some circumstances, Reminiscent of the preamble and declaration of independence. Countries under sharia law, it is punishable by law if your muslim and switch religions.
