Principles of Macroeconomics / Unit 17 MAC 1625 short lesson, about 20 seconds
Infant Industry
Captions available
The idea
Protect a new industry temporarily while it builds skills, management and scale, then let it compete. The premise is sound, because advantage built from learning can be created.
In practice
In practice industries often pass from infancy to obsolescence, and temporary protection proves durable.
Where people slip
Three conditions: target few industries, spare inputs others depend on, and fix the end date in advance.
Your place on the trail
Every lesson rests on earlier ones and opens later ones. Tap any to jump.
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