1.3.18

ENTREPRENEURSHIP SERVES NATIONAL SECURITY.

Don "Cafe Hayek" Boudreaux calls BS on the steel tariffs.
To the extent that a thriving U.S. steel industry is important for national defense, protecting U.S. steel producers from foreign competition diminishes their incentives and motivation to innovate and to keep production costs as low as possible.  This negative consequence of protectionism should, at the very least, be weighed against the allegedly ‘positive’ effect of ensuring that the U.S. steel industry is larger than it would be in the absence of U.S. government-imposed punitive taxes on Americans who buy imported steel.
In addition, the weighting ought pay attention to domestic metal fabricators, paying more for the privilege of buying that United States steel, and to domestic exporters, for instance Wisconsin ginseng farmers raising steel in their fields.

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