Today our wage levels of pretty similar all around the developed world. The shift away from agricultural protects our production towards industries using high skill labor more intensively increase unemployment as low-skilled workers lose their jobs at this hike in unemployment is anytime free as workers moved from agriculture and textile 2 new jobs created in the export competing industries
So should policymakers simply disregard these concerns as minor bumps in the road to greater prosperity in the US japan and government sconce high degree of protection industries threatened by increase international competition developed countries spin on subsidies for agriculture three hundred and fifty billion dollars a tear that’s a billion dollars a day and amount of money put into overseas development assistance is fifty billion dollars a year so you’ve got 7 times the amount of money that is going for development going into just one aspect have inhibition of trade. This protectionism is mentally turn to the strength of one organized interest group who can easily convinced politician to protect their interest a congressman may collect more votes if have save two thousand sugar industry shops by voting full protection than by voting against it and reducing the price of sugar despite the fact that cheaper shikha put benefit more people
Politicians take the easy route and they continue with protection even though it reduce in forty d p and therefore standard of living
Developing countries look at rich countries to examine how to entrust realize and climb in the global income distribution perhaps the main reason why European and north American countries are affluent societies today is because of the industrial revolution which transformed these countries alacra cultural manufacturing societies many belief this transformation took place under the protective umbrella if trade restriction
This claim has not been lost on policy maker in developing countries particularly in latin America who’ve argue at industrialized nation require protection from foreign competition
Let’s bring government ian to protect local manufacturing let’s bring government in to provide credit for local manufacturing led screen government in to adapter weijin salary strategy that create a deacons local market so that we can become industrialized economies the industrial revolution gave rise to new products and industries so European companies enjoyed a certain degree of natural monopoly initially this kind of production was small and the cost of production high but due to limit competition and some trade protection these industries the pine
It may be impossible for developing countries to compete with his well-established industries in Europe which already benefit from economy of scale
But with initial protection industries can survive until production levels are high enough and the cost of production has come down