Protectionism. Today supporters of open global markets refer to tariffs, quotas,and other barriers to free trade as "Protectionism."Protectionism, they argue, is inefficient:it not only raises prices for American consumer,but it also directs American capital and labor away from their best uses into aging,inefficient industries.This reduces a nation's overall productivity and ultimately its standard of living. Moreover, they argue that protectionist policies initiated by the United States invite retaliatory actions by other nations.U.S. exporting industries may be adversely affected by the resulting trade wars.
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