Source
Krugman, Paul. "A Trade Pact for Chips: Just a fancy form of Protectionism." New York Times. August 10, 1986. F2.
Claims
- “...limits in trade do not add to employment.”
- “the jobs protected in one part of the economy are always matched by jobs lost elsewhere.”
- “...the only net effect of trade restrictions is that we force our economy to do the things it does relatively badly instead of the things it does relatively well.”
- “The trade policies of foreign governments have not caused or even contributed to our to our trade deficit.”
- “...the government, in effect, has organized American and foreign producers into a cartel that raises prices at the expense of United States consumers.”
Prediction
“...in the future, we will see many proposals to extend the pattern of sugar, autos and textiles to other industries.”