Final answer:
The cost of saving jobs in protected industries, through measures like protectionism, is typically much higher than the workers' wages and salaries. This can lead to increased prices for consumers, and disproportionately affect low-wage workers.
Step-by-step explanation:
The question relates to the economic concept of protectionism and its impact on jobs within protected industries. When an industry is protected by the government typically through tariffs, quotas, or other trade barriers aimed at minimizing competition from foreign imports, the intention is often to preserve domestic jobs. However, the cost of saving jobs in protected industries can be significantly higher than the wages and salaries of the workers in those industries.
For instance, economists at the Federal Reserve Bank of Dallas have presented data indicating that the cost of saving a single job in the textile and apparel industry, through protectionist measures, would amount to $199,000 per job saved. This figure starkly contrasts with what those workers might earn annually, as they could theoretically be paid half that amount to not work at all and still result in less expense.
Such a high cost not only affects the industry itself but can also result in higher prices for essential goods such as food and clothing, spreading the impact to low-wage workers across all sectors. Consequently, these workers end up paying more for basic necessities, which diminishes their purchasing power.