Monday, April 13, 2009

Protectionism or Slower Economy

This is an interesting development, (HT to Don Boudreaux at Cafe Hayek) although not unexpected. And I think it's one you could easily use with your students to explain the value of trade as well as the concept of comparative advantage.

Considering the logic here, I'm sure that the state of Florida will have no problem with the rest of us spending future spring breaks and vacations in our home states, or visiting local amusement parks instead of one in the Sunshine State, or even buying local fruit instead of something from their state.

We wouldn't want to deprive one of the workers in our states of a job now, would we? The reality is we all benefit when we trade with one another. And while the site in question talks about jobs lost as a result of purchasing from another state, they make no mention of the jobs gained by people in other states purchasing their goods and services.

I look forward to your comments.

This post relates to the following Keystone Economic Principles:
1. We all make choices.
5. Incentives produce “predictable” responses.
6. Do what you do best; trade for the rest.
8. Quantity and quality of available resources impact living standards.

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