absolutideas

Division of Labor:

The argument that the tariff reduces quality is generally under-appreciated. For example, while the U.S. automobile industry has any number of problems, it is undeniable that the quality of the automobiles for sale in the United States has dramatically improved after the U.S. auto market opened to foreign competition. This improvement in quality has occurred despite a number of attempts to limit imports (through quotas, tariffs, local content requirements, etc).

..The word “scheme” is a great word for economic policy, the tariff being only one of thousands of schemes hatched by governments around the world on a regular basis. I like the word “scheme” because generally the policies are concocted by a very few individuals working in concert with politicians who enact policy with little concern for the unintended consequences.

My perception is that the word is today reserved for those private citizens who fleece their fellows, e.g. Bernard Madoff. Yet, a Google Search of the word “scheme” in the news section yields the following headlines, which makes me feel a little better…

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