Wednesday, August 1

How the Shrimp Tariff Backfired

This is a brilliant exposition of how the law of un-intended consequences works when governments try to protect certain sectors against market standards and rules of economics. I have talked about this law many times, but not in this case of shrimps.

So lets see what happened? by taking this action, the taxpayer spent more money on subsidies, the targeted countries got upset with USA, more shrimp came in anyway, and the domestic producers got hammered even more, the reputation of USA as a principled free trader took a knock and at end of the day? USA lost on all counts. Are the democrats listening?

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