A question about free trade.

As I understand it, free trade ideology became prominent in a world where the most obvious barriers to the realization of comparative advantages were between not within borders.  Since then, income taxes and labor market regulation have become the most substantial sources of government interventionism.  Why do many economists find it obvious that tariffs would signal economic calamity, even if they are accompanied by broad, within border liberalization?  To put it another way, why do so many economists fiercely argue against taxes between countries while ignoring, or even cheering, taxes between people?

2 comments
  1. Alice said:

    False equivalence, managing trade relationships dynamics not the same as achieving domestic policy aims.

    • This is obviously true and not an answer to my question. It would be a counterpoint to the claim “we should support higher tariffs to pay for social programs or whatever *because* we are okay with domestic taxes.” I never suggested anything of the sort. >

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s