Written By: Arshiya Chaudhary
“The philosophy of protectionism is a philosophy of war” – Ludwig Von Mises. Cited by a renowned libertarian economist, this quote communicates the popular perception behind trade protectionism. But, can protectionism ever be a good idea? Or does it always contradict its own purpose?
Simply put, Protectionism is a policy that restricts free trade. In terms of world trade, it restricts imports from other countries using control methods like tariffs, quotas, production standards and government regulations. Protectionism within a country can be implemented to protect small firms and businesses from competition, by regulating taxes and subsidies.