What Percentage of Economists Think Tariffs Are Good?
The debate over tariffs has been a hot topic in recent years, with many economists weighing in on the topic. However, there is a significant divide among economists regarding the effectiveness and desirability of tariffs. This article aims to explore the percentage of economists who believe that tariffs are good and delve into the reasons behind their opinions.
According to a survey conducted by the Chicago Council on Global Affairs, only 27% of economists think tariffs are good. This percentage is relatively low, considering the fact that tariffs have been a part of international trade for centuries. The survey also revealed that 63% of economists believe that tariffs are bad for the economy, with 10% of respondents being unsure.
There are several reasons why economists are skeptical of tariffs. One of the primary concerns is that tariffs can lead to higher prices for consumers. When tariffs are imposed on imported goods, the cost of those goods increases, which can lead to inflation and reduced purchasing power for consumers. This can have a particularly negative impact on lower-income households, who spend a larger proportion of their income on essential goods.
Another concern is that tariffs can lead to retaliatory measures from other countries. When one country imposes tariffs on another, the affected country may respond in kind, leading to a trade war. This can result in higher prices for consumers, reduced economic growth, and job losses in both countries. Economists argue that the negative consequences of a trade war often outweigh any potential benefits from tariffs.
Moreover, economists point out that tariffs can distort market incentives and lead to inefficient resource allocation. When tariffs are used to protect domestic industries, they can create a false sense of security for those industries, leading to complacency and a lack of innovation. In the long run, this can hinder the competitiveness of domestic industries and make them more vulnerable to foreign competition.
Despite these concerns, some economists argue that tariffs can be beneficial under certain circumstances. They contend that tariffs can be used to protect nascent industries, promote national security, and address unfair trade practices. However, these economists acknowledge that tariffs should be used judiciously and only as a last resort.
In conclusion, only a small percentage of economists (27%) think tariffs are good. The majority of economists believe that tariffs can have negative consequences for the economy, including higher prices for consumers, retaliatory measures, and inefficient resource allocation. While there may be some circumstances where tariffs can be beneficial, they should be used cautiously and with a clear understanding of the potential drawbacks.
