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Category > Business & Finance Posted 02 Sep 2017 My Price 8.00

Protectionist trade policies result in higher prices for consumers.

Protectionist trade policies result in higher prices for consumers. One way to view the higher prices is as a transfer from workers in unprotected industries to those in the protected industry. The issue is complicated by the fact that protectionist policies cost everyone, but usually only a little bit, so people may not feel compelled to vote against someone who endorses protectionist policies. On the other hand, workers who feel threatened by cheaper imports will rationally vote as a block for politicians who offer them trade protection.

 

Which term best describes this situation where politicians may vote for legislation that actually hurts the country overall because their positive vote may increase their chances for reelection?

 

Please do not knowingly give partial or incorrect answers. Thank you for the help.

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SophiaPretty
(5)
Status NEW Posted 02 Sep 2017 09:09 AM My Price 8.00

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