Killing the Infant Industry Argument

We already saw the slaying of the “tariffs are good when you are growing!” argument last week. Today it is time to link to an explanation of why the “Infant Industry” argument is bogus. The job has been expertly done by Tim Harford in Forbes. Governments aren’t good at identifying which industries will turn out as winners in the global market place. The incentives that drive government officials drive them towards protecting aging industries, not growing ones.

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