Home
/
RELIGION & LIBERTY ONLINE
/
Protectionism keeps making Americans poorer
Protectionism keeps making Americans poorer
Mar 15, 2026 10:33 PM

“President Trump’s decision to impose tariffs on imported washing machines has had an odd effect,” notes Jim Tankersley in the New York Times. “It raised prices on washing machines, as expected, but also drove up the cost of clothes dryers, which rose by $92 last year.

Tankersley is referring to a new report by a team of economists at the University of Chicago and the Federal Reserve Board that studied the effects of Trump’s 2018 tariffs on imported washing machines. Their report finds that,

Despite the increase in domestic production and employment, the costs of these 2018 tariffs are substantial: in a partial equilibrium setting, we estimate increased annual consumer costs of around $1.5 billion, or roughly $820,000 per job created.

The workers certainly didn’t get paid $820,000 a year to make washers, so where did money go? It went into the coffers of the Treasury and into the pockets panies that manufacture washing machines and dryers. “Companies that largely sell imported washers, like Samsung and LG, raised prices pensate for the tariff costs they had to pay,” says Tankersley. “But domestic manufacturers, like Whirlpool, increased prices, too, largely because they could.”

When panies pushed for the tariffs to “save American jobs” what they were really doing was increasing their own profits by preying on the economic ignorance of the American public about the effects of tariffs. (Crony capitalists are gifted in finding ways to get the public to support policies that make them richer while making other citizens poorer.)

This is a classic example of how protectionism focuses on that which is seen and ignores what which is not seen. Like the president, it’s easy for us to “see” that 200 jobs were “saved.” What is harder—indeed nearly impossible—for the public to see is the cost of the protectionist policy, including the jobs that weren’t created because of the tariffs.

Because Americans had to spend about a billion dollars more for washing machines and dryer than they would have without the tariff, they have less to spend on other goods and services. While those 200 workers may have been better off (depending on whether or not they could have found other jobs), the American public overall was made much, much worse off.

Somewhere a parent wasn’t able to buy new clothes for their children because they had to spend more money than was necessary on tires. Somewhere a single mother had to choose between putting food on the table and getting a washer and dryer to clean her family’s clothes. Those are the types of tradeoffs the tariff forced Americans to make.

Also, keep in mind that we are only talking about the effect of one tariff on one small industry. Imagine the effect of all unnecessary tariffs on the entire economy, an effect estimated to be $500 billion a year. How many more good and services did we have to give up to “protect” those jobs?

This is why protectionism makes us poorer, not richer. While it looks like we are “saving” some jobs, what we don’t see is that it is costing us other job and that everyone, especially the poor, has to bear the burden in the form of higher prices. The more tariffs we impose, the more industries we “protect,” the poorer we all e.

Comments
Welcome to mreligion comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
RELIGION & LIBERTY ONLINE
7 Figures: The Shifting Religious Identity of Latinos in the U.S.
Religious polarization is taking place in the munity, with the shrinking majority of Hispanic Catholics holding the middle ground between two growing groups (evangelical Protestants and the unaffiliated) that are at opposite ends of the U.S. religious spectrum, according to a new survey by the Pew Research Center. Here are seven figures you should know from that report: 1. Because of the growing Hispanic population, a day e when a majority of Catholics in the United States will be Hispanic,...
Bob Woodson and ‘The Poverty Industry’
The Center for Neighborhood Enterprise in Washington is led by Robert Woodson who founded it in 1981 to help neighborhoods where what he calls “the poverty industry” doesn’t seem to help much. He’s torqued that many fellow African Americans have abandoned their poor brothers except to exploit them noting that 70 cents of every welfare dollar goes to social workers, counselors and others. His organization has trained 2,500 field workers in 39 states. He believes that instead of more government...
Should We Ban Farm Tractors to Save Jobs?
America could have saved more jobs if, prior to the Industrial Revolution, politicians had banned the use of tractors. But that would have made everyone (especially those of us living in 2014) much worse off. Many Americans understand this point and yet still believe that when workers lose their jobs, we automatically e worse off. Economist Bryan Caplan explains the problem with this ‘make-work’ bias, and why we are better off because of 19th century workers who lost their farm...
Kishore Jayabalan: ‘Say “No” to Government Expansion’
Kishore Jayabalan, director of the Istituto Acton in Rome, recently wrote an article at Aleteia, titled ‘Freedom, Truth, & State Power: The Case for Religious and Economic Freedom.’ He begins his piece with a statement Gerald R. Ford made soon after ing president: “A government big enough to give you everything you want is a government big enough to take from you everything you have.” Jayabalan continues: Trust in our political leaders increased around the time of the September 11,...
Deirdre McCloskey on Ethics and Rhetoric in the ‘Great Enrichment’
In a marvelous speech on the origins of economic freedom (and its subsequent fruits), Deirdre McCloskey aptly crystallizes the deeper implications of her work on bourgeois virtuesand bourgeoisdignity. For example, though many doubted that those in once-socialistic India e to see markets favorably, eventually those attitudes changed, and with it came prosperity. As McCloskey explains: The leading Bollywood films changed their heroes from the 1950s to the 1980s from bureaucrats to businesspeople, and their villains from factory owners to policemen,...
Want To Change A Nation? Give A Girl A Book
I don’t know any terrorists, but they seem to be very fearful people. They are afraid of new ideas, other religions, air strikes, and bathing. Nicholas Kristof, of The New York Times, says that what terrorists are really afraid of are educated women. Kristof points out that the Boko Haram did not choose to bomb a church or go after politicians. They targeted a girls’ school. The biggest threat to a terrorist is a woman who can read, write, work,...
G.K. Chesterton on the work of mothers
Our discussions about faith-work integration often focus on paid labor, yet there is plenty of value, meaning, and fulfillment in other areas where the market may assign little to no direct dollars and cents. I’ve written about this previously as it pertains to fatherhood, but given the ing holiday, the work of mothers is surely worthy of some pause and praise. My wife stays at home full-time with our three small children, and I can’t count the number of times...
Tolkien, Hobbits, Hippies and War
Jay Richards and I have an Ignatius Press book on mitment to ing out soon, so we’ve been following developments in the Hobbit film trilogy more closely than we might otherwise. A recent development is director Peter Jackson announcing a subtitle change to the third film—from There and Back Again, to Battle of the Five Armies. That’s maybe a bit narrow for a novel that’s also about food, fellowship and song, but I think it’d be going too far to...
The Dignity of Chickens and the Character of God
After a farmer in Australia had a change of heart about keeping his chickens in battery cages, he freed all 752 hens. The video below (via Rod Dreher) shows the chickens taking their first steps on soil, and feeling sunshine for the first time. What is your initial reaction on seeing the video? Did you roll your eyes at the liberal-leaning, anti-business, vegetarian-loving motive that surely inspired the clip? Did you automatically assume the “animal rights” nuts (the video was...
Samuel Gregg: Indivisibility Of Religious Liberty, Economic Freedom
Sam Gregg, Acton’s director of research, makes the case that limiting religious liberty also infringes upon economic growth in The American Spectator. Gregg uses history to illustrate the point. Unjust restrictions on religious liberty e in the form of limiting the ability of members of particular faiths to participate fully in public life. Catholics in the England of Elizabeth I and James I, for instance, were gradually stripped of most of their civil and political rights because of their refusal...
Related Classification
Copyright 2023-2026 - www.mreligion.com All Rights Reserved