Senate Protest and Analysis Thread (user search)
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  Senate Protest and Analysis Thread (search mode)
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Author Topic: Senate Protest and Analysis Thread  (Read 305978 times)
Gustaf
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« on: January 06, 2009, 06:50:13 AM »

I'd like to note that a subsidy of an industry is generally a poor idea since economic theory shows that it is bound to damage your own country financially. A tariff is better. And free trade is even better than that. If we want to help those that get hurt by international trade there are less costlier ways of going about it.
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Gustaf
Moderators
Atlas Star
*****
Posts: 29,779


Political Matrix
E: 0.39, S: -0.70

« Reply #1 on: January 06, 2009, 05:38:28 PM »

The point of the legislation in question isn't to make money for fantasyland, but to limit the damage caused by fantasyland's one-sided trade policies to areas traditionally dependent on the industries in question.

Probably the best thing to do would be to repeal all the existingde facto subsidies for other countries industries "free trade" acts and replace them with, you know, actual free trade agreements, but I don't think that's likely here.

I understand the intent. But I'm studying trade policy right now (my exam is next week) and what I'm saying is that you can get the exact same protection for those areas through a tariff, but at much greater benefit to your country.

But I sort of forget what you did to Atlasia during these past years. Is it still like the US or did you have your wish and turned it into a small country of no world significance? Because in the latter case the choice between tariff and subsidy becomes less important, but the gains from free trade becomes higher.
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