Social Sciences and History / Unit 15 SSH 1431 short lesson, about 20 seconds
Protectionism as a Subsidy From Consumers to Producers
Captions available
The idea
Protectionism raises the price of the protected good in the domestic market. Domestic consumers pay more and domestic producers earn more: an indirect subsidy from consumers to producers, in the anchor's title. Whether by tariff, quota or nontariff barrier, the transfer is the same.
In practice
Consumer surplus lost, producer surplus gained, deadweight in between.
Where people slip
Unit 13's surplus triangles apply.
Your place on the trail
Every lesson rests on earlier ones and opens later ones. Tap any to jump.
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