The new protectionism
PROTECTIONISM IS perennially popular in Gary and Youngstown, but over the past decade it has grown more respectable in Cambridge, New York, and Washington D.C. There seem to be several reasons. One is the tremendous economic success of Japan, Korea, and other East Asian countries, and the perception that their success is due, at least in part, to protectionism. Another factor is the research of a number of economists working in “strategic trade theory.” These economists have demonstrated that, under certain conditions, protectionism can provide broad economic benefits for the country practicing it and, in some cases, for the world at large . . .