Economics Volume II: Modern Economic ProblemsFetter, Frank A. (Frank Albert)
General
Economics Volume II: Modern Economic Problems
Fetter, Frank A. (Frank Albert)
Economics
§ 14. #Some lessons from our tariff history.# Can we draw from the
checkered course of tariff history in America clear lessons of wisdom
for the future? At least certain negative conclusions may be safely
drawn. It is a history of a vacillating public opinion toward the
policy of protective duties. Always the policy has kept some hold
on public sentiment, but it has varied in strength, now waxing, now
waning. The time of revisions has been determined nearly always by
varying needs of revenue. When more income has had to be raised, this
has nearly always been made the occasion and pretext for increasing
the degree of protection for many industries. This is not at all a
necessary connection, for it would be possible to couple internal
revenue taxes and customs duties in such a way that the rates would go
up and down together and give the varying amounts of revenue
required for the government without appreciably altering the relative
profitableness of various private enterprises.
Our tariff history is too largely a record of special favors granted
to classes of citizens, to the citizens of certain localities, and to
particular enterprises. This is apparent even in a general survey, but
almost every more detailed examination of particular protective rates
reveals evidence of suspicious and sometimes scandalous personal
influences at work. The protective policy has always professedly
been advocated for the general welfare to raise wages or to make the
country prosperous, but the initiative has always been taken, and
the valiant work in contributing funds for campaign purposes and
in lobbying bills through Congress has been done, by the interested
manufacturers. Even if it were beyond question sound in principle to
exclude goods that can be bought more cheaply by trade, it is very
doubtful whether any net good could have resulted from this policy
as it has been in fact applied and followed. The frequent and
unpredictable changes have been a great evil, and have again and again
brought unmerited losses to the many in business and still greater
and unearned gains to a favored few. It is incredible that such a
hit-or-miss, in large part selfishly determined, policy could have
been an important cause of our national prosperity. The fundamental
causes of the general high wages and popular welfare that we have
enjoyed is to be found rather in our rich natural resources,
our capacity for self-government with free institutions, and the
industrial energies of our people.[13]
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