Economics Volume II: Modern Economic ProblemsFetter, Frank A. (Frank Albert)
General
Economics Volume II: Modern Economic Problems
Fetter, Frank A. (Frank Albert)
Economics
Experience abundantly shows that, with a few exceptions, due to
climate and natural resources, it is impossible to put into effect the
most moderate schedule of duties without the increase in price at once
causing some men to shift their occupations, and to begin producing
articles of the kinds that have risen in price. At once appears a
group of "protected industries," the owners of which are dependent for
the safety and profits of their investments, and the workmen in which
are dependent for the security of their present jobs (possibly for
the chance to continue the pursuit of highly skilled trades) on the
continuance, if not the increase, of the existing tariff rates. A
tariff may be adopted mainly from stress of financial need (as in our
own history in 1789 or in 1861), but its modification or repeal cannot
be decided by fiscal considerations. The "incidental protection" it
affords has created a wealthy and influential group of employers and a
large body of employees who are irresistibly tempted to exercise their
influence in politics almost solely in favor of continuing and of
increasing the rates to the sacrifice of the higher civic life of
their communities. Of course the beneficiaries of the tariff usually
believe sincerely that it is indispensable for the prosperity of the
country as a whole, and they can do much to persuade others to
the same opinion. This commercial motive for maintaining existing
protective tariffs explains in large part their wide prevalence,
whatever other reasons may be adduced in their justification.
Public-domain text, read in full here on John Shaqi.
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