Protectionism: Should protectionism be advanced during recession?

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  • No, it makes it worse.

    No, protectionism should not be advanced during the recession, because a recession is a time where the laws of buying and selling need to be the most relaxed. If the cost of input for goods increases, because of protectionism, people and companies will have less money to spend on inputs for their products. This will make things worse, not better.

  • No, protectionist policies prolong recessions.

    No, protectionism actually worsens the impact of an economic downturn. During the Great Depression many countries adopted protectionist policies under the guise of promoting domestic manufacturing and preventing job outsourcing, but these laws produced the opposite effect. Protectionism inhibits global trade, slowing the rate at which the global economy can expand and offer more jobs to those who lack them. Conversely, free trade agreements better allow individual countries to focus on doing what they do best, resulting in better final outcomes for almost everyone.

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