Home
/
RELIGION & LIBERTY ONLINE
/
Protectionism leads to turmoil, strife, and disorder
Protectionism leads to turmoil, strife, and disorder
Sep 22, 2024 10:24 AM

Proponents of protectionism often ground their support in a quasi-nationalism; trade should be restricted for the benefit of the nation. Economically, the argument holds little weight. The benefits of more trade, like more and cheaper goods, outweigh the costs, like some temporary unemployment that results from the closing of a factory that pete with panies.

Some protectionists may accept this, and still urge tariffs, quotas, and other restrictions. They argue that a nation can still benefit, even with economic disadvantages. Sure, consumers might pay in higher prices if there’s a tariff on steel, but think of all the jobs! The consequences of protectionism, however,are not simply economic. Rather than developing national and political unity, tariffs often lead to national discord.

Take the United States in the early nineteenth century. Its still developing economy was primarily agricultural, with a mercial and manufacturing sector. Many early American politicians advocated a tariff in order to protect, foster, and develop American manufacturing.

Ignoring the economic flaws of such a plan, the policy sowed the seeds for national disunion, culminating in the United States Civil War. How?

The tariff at the time, like all tariffs, concentrated benefits to a few and spread the costs onto many. The benefits were still further concentrated regionally, and the costs laid more heavily on some than others. In this case, Northern states with more manufacturing gained, but only at the expense of the more agricultural Southern states.

Regional tensions first came to a head in 1828, with the passing of the so called Tariff of Abominations, which raised tariff rates to the further benefit of Northern manufacturing. John Calhoun, at the time the Vice President, anonymously wrote in opposition a pamphlet titled The South Carolina Exposition and Protest. In it, he outlines the growing discord stemming from protectionism. He writes:

The whole system of legislation imposing duties on imports – not for revenue, but the protection of one branch of industry at the expense of others – is unconstitutional, unequal, and oppressive, and calculated to corrupt the public virtue and destroy the liberty of the country …

plaint is, that we are not permitted to consume the fruits of our labor; but that, through an artful plex system, in violation of every principle of justice, they are transferred from us to others.

Calhoun’s opposition is at least partially motivated by the Southern emphasis on agriculture, and its loss at the expense of Northern manufacturing gain. While all are forced to pay higher prices for manufactured goods, Northern industrial centers at least benefit from more jobs and production. In the South, where manufacturing was largely absent, farmers pay more without any benefits pensation. It e as no surprise that many in these states, like John Calhoun, came to resent Northern prosperity that came at the expense of theirs.

Calhounis most strongly motivated by concerns of justice. The law (the tariff) effectively takes from one, and gives it to another. The power of law is abused “by being converted into an instrument of rearing up the industry of one section of the country on the ruins of another.” With such a tariff, “its burdens are exclusively on one side and its benefits on the other.” Calhoun does not oppose manufacturing, but he does oppose the unjust expansion of it at the expense of others, writing:

The question, then, is not whether those States should or should not manufacture … but whether they should, with or without a bounty. It was our interest that they should without. It pel them to contend with the rest of the world in our market, in free and petition.

Of course, for all his opposition to the injustice of tariffs, Calhoun supported the far greater injustice of slavery, the ultimate expression of “burdens on one side, benefits on the other.” While he may have been a hypocrite in this regard, and deeply wrong on the justice and morality of slavery, he raises important political concerns associated with protectionism. What happens when the law gives to one from another? Will such a system have further political ramifications?

Frédéric Bastiat, who devoted much of his life to fighting protectionist ideas, wrote deeply on the proper role of law, and its perversion, in his famous essay The Law. He writes:

But how is this legal plunder to be identified? Quite simply. See if the law takes from some persons what belongs to them, and gives it to other persons to whom it does not belong. See if the law benefits one citizen at the expense of another by doing what the citizen himself cannot do mitting a crime.

Then abolish this law without delay, for it is not only an evil itself, but also it is a fertile source for further evils because it invites reprisals. If such a law — which may be an isolated case — is not abolished immediately, it will spread, multiply, and develop into a system.

Not only are tariffs a perversion of justice, as Bastiat writes, but they also lead to national turmoil. If one region, one group of people, or one type of industry benefit at the expense of others, resentment and reprisal quickly sets in. Protectionism leads to division and discord, not unity and peace.

Let the steel manufacturers make steel. Let the farmers farm. Let the doctors heal. True national es from individual choice and action. Trying to force people to buy only domestic steel, or cars, or wheat, or whatever else by charging a prohibitive tariff only builds resentment. Voluntary exchange is the glue that binds society, and a nation, together. Protectionism tears it apart.

Comments
Welcome to mreligion comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
RELIGION & LIBERTY ONLINE
The Burkean tradition in Britain and America
Writing two decades ago, Gertrude Himmelfarb observed: In Britain, as in America, more and more conservatives are returning to an older Burkean tradition, which appreciates the material advantages of a free-market economy (Edmund Burke himself was a disciple of Adam Smith), but also recognizes that such an economy does not automatically produce the moral social goods that they value—that it may even subvert those goods. –Gertrude Himmelfarb, The De-Moralization of Society: From Victorian Virtues to Modern Values (New York: Alfred...
What Jonathan Edwards can teach American Christians about economic justice
Ask most Americans what they know about Jonathan Edwards and they are most likely to mention reading “”Sinners in the Hands of an Angry God” in high school. Being known for preaching the most famous sermon in U.S. history is no small plishment. But Edwards was one of our country’s foremost intellectuals and (arguably) our greatest Protestant theologian. He was also, as Greg Forster notes in an article for TGC, a champion of economic justice. As Forster says, Edwards believed...
The hockey stick of human prosperity
Since the era of Adam Smith economists have been asking, “What creates wealth?” One key answer is specialization and trade. On a timeline of human history, the recent rise in standards of living resembles a hockey stick — flatlining for all of human history and then skyrocketing in just the last few centuries. As economist Don Boudreaux explains, without specialization and trade, our ancient ancestors only consumed what they could make themselves. How can specialization and trade help explain the...
The global poor’s exclusion from markets
It’s mon misconception in public discourse that the global poor are trapped in poverty because of globalization. We frequently hear things from our public leaders about how markets are crushing the poor. “The reality is that the poor aren’t dominated by markets. They are excluded from them.” says Michael Matheson Miller in an article for The Stream. Miller hits on four different problems and misconceptions of how international economic development is currently addressed. He starts out by explaining how the...
7 Figures: The 2016 poverty survey
The American Enterprise Institute and the Los Angeles Times have joined together to release a new survey of attitudes toward the poor, poverty, and welfare in the United States. Here are seven figures from the report you should know about: 1. The poor are more than twice as likely as those not in poverty (24 percent to 10 percent) to say the church has the greatest responsibility for helping the poor. The poor are also slightly less likely (31 percent...
Samuel Gregg on Argentina’s economy
After a recent trip to Argentina, Samuel Gregg reflects on its current economic state in a piece for The Catholic World Report. Gregg highlights the role that current Argentine politics play on economic policy and how Pope Francis affects the Catholic Church in his home country. For the first time in 13 years, Argentina has elected a non-Perónist leader. Mauricio Macri replaced Néstor Kirchner and his wife Cristina in November 2015. The Kirchners represented a wave of Latin American leftist-populists...
A biblical-theological case against chimeras
Earlier this month the National Institutes of Health (NIH) announced it is planning to lift its ban on federal funding of some research that creates chimeras by injecting human stem cells into animal embryos. The policy changeraises significant ethical concerns, both aboutthe prudence of creating animal-human hybrids and legitimacy of using taxpayerfunding for such controversial research. Unfortunately, while many people are unfamiliar with the research, it is not a new development.Chinese scientistsbegan in 2003 by fusing human cells with rabbit...
Does the state have imperium over the church?
Intheaters this week is a new film about an FBI agent who goes undercover to find and stop white supremacists. While the movie looks like a standard thriller the title is unusual: Imperium. Imperium isn’t a word we hear very often today. es from the Latin for mand” or “empire” and referred to the supreme executive power in the Roman state, involving both military and judicial authority. The word would later be adopted for the term imperator (emperor), a title...
Imago Dei—male and female
The PowerBlog es Lisa Slayton with her review of A Woman’s Place: A Christian Vision for Your Calling in the Office, the Home, and the World by Katelyn Beaty. Slayton joined Pittsburgh Leadership Foundation in 2005 to develop a leadership offering, the Leaders Collaborative, that integrated a biblical worldview with vocational discipleship and organizational effectiveness for the flourishing of our city. She became the President/CEO in 2012 and is passionate about moving faith/work/vocation from theory to praxis. Imago Dei—male and...
5 Facts about women’s suffrage and the 19th Amendment
Today, we celebrate the 96th anniversary of the 19th Amendment to the U.S. Constitution (ratified on August 18, 1920). Here are five facts you should know about women’s suffrage and the 19th Amendment: 1. The 19th Amendment doesn’t directly mention women. The text states: The right of citizens of the United States to vote shall not be denied or abridged by the United States or by any State on account of sex. Congress shall have power to enforce this article...
Related Classification
Copyright 2023-2024 - www.mreligion.com All Rights Reserved