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
_Reasons against protective tariff._—Against a system of protective
tariffs many strong arguments are not wanting. It is contended that a
tariff on iron goods, for instance, is just so much an added burden upon
all consumers of iron, and, since the bulk of consumption enters into the
cost of articles of universal use, the greater part of the burden is borne
by the poorer classes of people, who consume as much as the more wealthy.
If the restrictive tariff actually limits the introduction of foreign
goods, as must be the case if it acts as a stimulant in production, the
revenues received are far from being in due proportion with the cost to
the people, since essentially the same tariff is paid by the consumer
whether the article is imported or manufactured at home. Although it is
not true that in every instance the tariff is a tax, in so far as it
benefits the home manufacturer by advanced prices it must be. In so far as
it operates for protection of favored industries, it certainly fails to
serve the purposes of revenue. The diversity of employment evidently
fostered by tariff is said to be unnatural and likely to continue
expensive, and any advantages of market at home are sure to be
overestimated, especially with reference to staple products of the farm,
since the surplus necessarily forming a basis for prices must be sold in
foreign countries without the advantage of direct exchange for articles of
their own production. That is, if our tariff restrictions limit the market
of a foreign people, they also limit the ability of that people to
purchase the products which we are obliged to sell them. It is contended
further that a rapid development of varied industries, instead of
maintaining soil fertility, tends to more rapid exhaustion by making more
probable the consumption of cruder products of the farm in villages and
cities too remote for return of fertility, although within the same
country. The development of natural resources under stimulant of a tariff
is admitted by its opponents, but represented as a waste of effort, since
the tendency is to withdraw capital and labor from more productive
industries into less productive, and that, too, at the expense of the more
productive. If factories cannot give an equal profit with farming, it is
absurd to tempt capital away from the farms into factories. So, although
wealth may be accumulated in showy enterprises, the people, as a whole,
are less thrifty and bear unequal burdens. It is further contended that
the total labor of the community, when a part is used in unprofitable
development of resources, is made on the whole less productive, and
therefore the people are less able to buy their neighbors’ products, and
must live with diminished comforts. In that case all the haste in
developing natural resources is actual waste.
Public-domain text, read in full here on John Shaqi.
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