Couverture de Are tariffs bad for growth? Yes, say five decades of data from 150 countries

Are tariffs bad for growth? Yes, say five decades of data from 150 countries

Are tariffs bad for growth? Yes, say five decades of data from 150 countries

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 This episode examines a comprehensive 2020 economic study that analyzes five decades of data from 151 countries to determine the impact of trade barriers on national prosperity. The research concludes that increasing tariffs consistently leads to lower economic output, reduced productivity, and higher unemployment over the long term. While proponents often claim protectionism saves domestic jobs, the evidence suggests these taxes actually distort global markets and increase costs for both consumers and manufacturers. By looking at historical trends since the 1960s, the authors illustrate how free trade generally fosters growth while protectionist shifts tend to shrink a nation's total wealth. Ultimately, the source argues that the macroeconomic damage caused by tariffs far outweighs any temporary or localized benefits they might provide.

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