Rural Wealth and Welfare: Economic Principles Illustrated and Applied in Farm LifeFairchild, Geo. T. (George Thompson)
Science
Rural Wealth and Welfare: Economic Principles Illustrated and Applied in Farm Life
Fairchild, Geo. T. (George Thompson)
Agriculture -- Economic aspects; Economics
For the same reason there are always two phases of a tariff discussion.
The student of social science inquires chiefly as to the tendencies of
advancing society with reference to such restriction, and, seeing the
barriers becoming less and less, is likely to seek the final removal of
every such restriction. The statesman, busied with the immediate
conditions of the limited community whose interests he guards, is liable
to be for or against any particular restriction as it fosters or hinders
those interests. For this reason statesmen, of whatever party, are subject
to the bias of local interests, and have even been known to change their
views with a change of such interests. In our own country, when party
lines are drawn upon the tariff, it is quite possible that sectional lines
may also mark the party supremacy. In fact, it is possible for any man to
believe in freedom of trade as the ultimate condition to be sought, while
he favors in immediate practice restriction or even prohibition by a
definite tariff. The purpose in this chapter is to give a brief outline of
arguments for and against such tariff in general, leaving entirely to
practical statesmanship the decision of special questions.
_Reasons for protective tariff._—A system of restrictive tariffs is
thought to contribute to the welfare of an entire community by
artificially increasing the natural diversity of employments. If new
enterprises can be fostered, exchanges are greatly increased, all the
advantages of exchange are secured within the country, and the general
intelligence of the people is increased. With this comes the enormous
advantage of what is called a home market for the cruder products of
industry. This is especially to the interest of farmers raising bulky
products or those not likely to bear transportation. It is further thought
to foster a better agriculture by a more natural return to the soil of
elements removed in cropping, the nearer body of population making such
return possible. It is also thought to make at once available the natural
resources of a country in mines, quarries, water powers, etc., which might
otherwise long remain useless. It is contended for as a means of checking
unfair competition between a long established community with special
advantages for factory methods, either in large accumulations of capital
or low wages of laborers, and a newer country where capital is scarce and
wages are high. It is sometimes held to be a means of maintaining a high
standard of wages through the advantage actually conferred upon certain
lines of industry, upon a supposition that competition at home without
these favored industries would reduce the wages maintained in other
industries. If a tariff on wool calls into profitable use a large amount
of farm capital in sheep raising, every wheat raiser is at the same time
benefited by reduction of competition in the wheat market. If the capital
and labor employed are enticed from other countries, the effect is the
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