Question

When politicians speak of the need for trade protection, it is rare that anyone

points out the increased costs consumers will pay as a result. In essence, the
leadership promises to transfer wealth from a large number of voters to the hands
of a relative few. How do governments create trade protection for a minority at
the expense of the majority, or at least a much larger group, of voters? Why does
the majority not object? Why do politicians who propose trade protection get
reelected?

Answer 1

Governments create trade protection for a minority at the expense of the majority by implementing tariffs, quotas, and other trade barriers on particular products. The majority does not object because it is easier to organize a small group of producers who benefit from protectionism compared to a larger group of consumers with diverse interests. Politicians who propose trade protection may get reelected because they can claim to be supporting local industries and saving or creating jobs.

Step-by-step explanation:

Governments create trade protection for a minority at the expense of the majority by implementing tariffs, quotas, and other trade barriers on particular products. These protections increase the costs of those products for consumers, transferring wealth from a large number of voters to a relative few. The majority does not object because it is easier to organize a small group of producers who benefit from protectionism compared to a larger group of consumers with diverse interests. Politicians who propose trade protection may get reelected because they can claim to be supporting local industries and saving or creating jobs.