Do tariffs really help industry to become efficient? Do subsidies do nothing more than become an avenue of revenue for industries that will never be competitive, or worse still merely a system to be exploited by industries that structure themselves to do little more than 'live off the taxpayer'?
Far from being economic imperative, tariffs and subsidies cannot be justified on economic grounds. It is not even true that a country needs a tariff even its trading partner has one, unilateral dropping of a tariff will benefit the country. One caveat: a country is not a person, so if a country drops a tariff someone in the country (consumers) will be better off, while someone else (producers) can become worse off. When I say that a country will become better off I mean that the winners can compensate the losers and still be better off.
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