Principles of Microeconomics / Unit 16 MIC 1515 short lesson, about 20 seconds
Protection as a Subsidy
Captions available
The idea
Protection is a subsidy from consumers to producers collected through higher prices; if it did not raise producers' receipts nobody would seek it. Consumers lose more than producers gain.
In practice
A domestic sugar price held near double the world price moved candy-making across the border.
Where people slip
Sugar-using industries lost jobs many times sugar growing's whole employment.
Your place on the trail
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