Policies, Politics, and Global Regulators
In This Chapter
• Domestic industry tariffs
• General agreement on tariffs and trade
• GATT and the WTO
Tariffs today serve a different purpose than they did in the past. In the nineteenth century, as a growing United States economy looked for more markets abroad, tariffs were a way for the government to collect revenue. Though tariffs varied from good to even better, after the McKinley Law passed in 1890, the average tariff rate hit 48 percent. In contrast, in 2006 it stood at 4.4 percent. As you will see, there has been plenty of rising and falling in the years between. Of course domestic manufacturers in the 1890s were as happy to be protected from foreign competition as manufacturersare ...