Principles of Macroeconomics / Unit 17 MAC 1621 short lesson, about 20 seconds
Protection Reshuffles Jobs
Captions available
The idea
Protection moves jobs from unprotected industries to protected ones; it does not raise the total. Consumers paying more have less to spend elsewhere, and firms using the protected good as an input lose sales to competitors paying less.
In practice
Total employment tracks the business cycle, not the trade share.
Where people slip
The second channel surprises people, and a later entry works a case of it.
Your place on the trail
Every lesson rests on earlier ones and opens later ones. Tap any to jump.
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