Home
/
RELIGION & LIBERTY ONLINE
/
Protectionism keeps making Americans poorer
Protectionism keeps making Americans poorer
Dec 15, 2025 12:42 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
Review: Hope for the Workplace, Christ in You
Bill Dalgetty’s Hope for the Workplace, Christ in You is rich with stories of people in business who are struggling to integrate their faith and work lives. Weaving biblical parables with dozens of real life stories gleaned from his experience as president of Christians in Commerce International, Dalgetty points—usually explicitly and sometimes in a more nuanced way—to universal truths of human conscience. Dalgetty, a career attorney and executive for Mobil Corporation, is sensitive to corporate America’s overly PC culture. He...
When a Church Embraces the Power of Entrepreneurship
When we hear about church “outreach ministries,” we often think of food pantries, homeless shelters, munity events. But while these can be powerful channels for service, many churches are beginning to look for new ways to empower individuals more holistically. For some, this means abandoning traditional charity altogether, focusing their ministry more directly around recognizing the gifts and strengths of others. For others, like Evangel Ministries in Detroit, it involves a mix of many things, but with a particular emphasis...
Our American Children And Poverty
Robert Putnam says our children are in a state of crisis. Those who live in poverty or near-poverty seemed to be doomed to stay there. Those born into families with money will likely go on to enjoy the lives that money affords. His book, Our Kids: The American Dream in Crisis, follows a number of individuals, tracking a list of factors, including the ability to move up or down the economic spectrum. One pivotal factor is marriage: Highly correlated is...
5 Principles for Spiritual Discernment in the Economic Order
If there’s one area of the faith-work conversation that’s lacking in exploration and introspection, it’s the role of spiritual discernment in the day-to-day decisions of economiclife. It’s one thing to orientone’s heart and mind around thebig picture of vocation and stewardship — no small feat, to be sure — but if economics is about the intersection of knowledge and human action, what does it mean to serve a God whose thoughts are higher than our thoughts?Before and beyondourquestions about ethics...
Radio Free Acton: Burt & Anita Folsom on Uncle Sam’s Subsidy Problem
On this week’s edition of Radio Free Acton,Burt and Anita Folsom discuss their latest book, Uncle Sam Can’t Count.Weexamine whether the government has a good track record in subsidizing industry and innovation, and look at some of the unforeseen consequences of subsidies in society. You can listen via the audio player below, and then be sure to check out the video of Burt’s Acton Lecture Series address as well. ...
Can We End Extreme Poverty by 2030?
Can the world put an end to extreme poverty within the next 15 years? That’s the current goal of the World Bank, and its expected that the United Nations will adopt that same target later this year. In 1990, the UN’s Millennium Development Goals included a target of halving poverty by 2015. That goal was achieved five years early. In 1990, more than one-third (36 percent) of the world’s population lived in abject poverty; by 2010 the number had been...
Free-Market Federalism
“States and municipalities craft laws that reflect local cultures, and this proximity to the people has market consequences,” says James Bruce in this week’s Acton Commentary. “Let’s call it free-market federalism, the encouragement of local markets by permitting states and municipalities to frame, as much as possible, the laws by which munities engage merce.” In a spirited defense of decentralization, Abraham Kuyper argues that a central government can only supplement local governments and families. Put another way, the central government...
Are Our Rights Gifts From the Government?
In his recent announcement that he was running for president, Sen. Ted Cruz’s said “our rights e from man, e from God Almighty.” That raised some eyebrows in our secular culture. For example, Meredith Shiner, a Yahoo reporter, tweeted:”Bizarre to talk about how rights are God-made and not man-made in your speech announcing a POTUS bid? When Constitution was man-made?” The idea that the “unalienable Rights” mentioned in the Declaration of Independence e from God is considered obvious to many...
What Does Human Dignity Look Like?
It monplace in Christian circles, whether Orthodox, Roman Catholic, or Protestant, to appeal in public discourse to the inviolable good of human dignity. Today at Ethika Politika, I seek to answer the question, “What does human dignity look like in real life?” It is fine to talk about it in the abstract, but what does it look like on the job or as a parent? I write, Real, flesh-and-blood human persons do not evoke our respect as naturally as an...
The Surrogacy Industry And Human Trafficking
Supporters of surrogacy tend to believe it is a win-win situation. Someone who desperately wants a child is given the opportunity to be a parent by someone who can have a baby, and is willing to do so either for money or out of benevolence (such as a sister acting as a surrogate for a sibling.) The truth is that the majority of surrogacy cases are ones where money changes hands. And when money changes hands, and the very lives...
Related Classification
Copyright 2023-2025 - www.mreligion.com All Rights Reserved