Q&A: If a government bars a foreign trader from doing business with govt contracts… is it a protectionism?
Question by Derrick: If a government bars a foreign trader from doing business with govt contracts… is it a protectionism?
More specifically: Is a WTO member nation considered a protectionist when it makes a law that mandates all government institutions including police, military and public schools to only buy footwear products from domestically produced manufacturers?
Best answer:
Answer by eclecticcrab
I would say no. Those things are related to domestic order and security and should be internal. I know the cons would disagree–they care only about lining their own pockets.
But this mindless ideology that any kind of limit on trade is automatically bad is ridiculous. Granted, free and open trade is generally to everyone’s benefit. The conservatives have taken it to an extreme and turned it into virtually an article of religious faith. It’s not–and good economic policy would recognize that there are going to be exceptions.
YOu’ll note that these same exxtremists don’t seem to mind that the so-called free trade the US currently has is NOT free trade. Our products arebarred or restricted in one market after another–while those countries have unlimited access to our markets. Te conservatives don’t care how much tthat hurts America–not as long as they canskim a profit off it.
What do you think? Answer below!