Tariffs, Trade, and Trouble
In This Chapter
• How do I tax thee? Let me count the ways
• What the consumer response is to taxes on trade
• What’s so great about a level playing field?
Nobel Prize-winning economist F. A. Hayek often wrote about the importanceof free trade, once saying, “It is necessary in the first instance that the parties in the market should be free to sell and buy at any price at which they can find a partner to the transaction and that anybody should be free to produce, sell, and buy anything that may be produced or sold at all.” The same conclusion is reached through the principle of comparative advantage—that free trade leads to the most efficient use of the world’s resources and creates the greatest possible ...