Quote from: niemivh on July 27, 2011, 04:05:43 PM

What countries use to become industrial or modern economies is so far from the "Free Market" that it might surprise most here. Transitioning from a 3rd world status to a 1st world status is nearly impossible if you open your doors to total free market polices. Throwing your infant industries on the world market before they are able to compete only benefits the largest global interests in said market as they will easily be able to crush you via dumping their products at lower prices until those companies goes under.

However a small minority of folks in said country will always do well in this Globalized system and be the regional vanguard of the neocolonialism that Globalization truly is.

Gotta get back to researching Chile.

So you are arguing that protectionism is not only beneficial but necessary to build up an economy?

You can't "dump" products onto a market, you can sell products you are more efficient at making for products that the other country is more efficient at making. This makes both groups better off*. When you "dump", you have to "dump" for something in trade. NO! the more restrictions you put up to "protect" your producers the more you hurt your consumers and there are far more of them to hurt.

* not EVERYONE in the group is better off in the very short term. If you make the Trabant and you let Toyota's and Volkswagen's in, your Trabant employees will have to go find something else to do. They will also be better off in the long term.