Question

There were 11,894 registered lobbyists in the United States in 2019, people whose primary job is asking the federal government for something. A lobbyist who comes with long experience as an aide to a powerful politician will earn at least $200,000 per year. Many lobbyists (not all) are attempting to restrict trade in order to turn consumer surplus into producer surplus. a. If the US were to amend the Constitution to permanently ban all tariffs and trade restrictions, these lobbyists would lose their jobs, and they'd have to leave Washington to get "real" jobs. Would this job change lower US productivity or raise it? b. Would most of the lobbyists likely earn more after the amendment was enacted or less? c. How can you reconcile your answers to parts a and b?

Answer 1

The amendment to ban tariffs and trade restrictions would likely raise US productivity. Most lobbyists would earn less after the amendment is enacted. The job change for lobbyists may negatively impact their earnings, but it would have a positive effect on the economy as a whole.

Step-by-step explanation:

The amendment to ban all tariffs and trade restrictions would likely raise US productivity. By removing trade barriers, it allows for free and fair competition, which can lead to increased efficiency, innovation, and specialization in different industries. This can result in higher overall productivity in the country.

After the amendment is enacted, most lobbyists would likely earn less. Their primary goal is to restrict trade in order to turn consumer surplus into producer surplus.

With the removal of tariffs and trade restrictions, their lobbying efforts would become ineffective, and they would lose their jobs or have to seek employment in other industries.

The answers to parts a and b can be reconciled by understanding that while the job change for lobbyists may result in a temporary negative impact on their individual earnings, the overall effect on the economy would be positive.

The increase in productivity and economic growth resulting from the removal of trade barriers would benefit the country as a whole.