Protectionism

A capitalist world organized on liberal principles knows no separate “economic” zones. In such a world, the whole of the earth’s surface forms a single economic territory.

Liberalism, p. 113

Economic nationalism is incompatible with durable peace. Yet economic nationalism is unavoidable where there is government interference with business. Protectionism is indispensable where there is no domestic free trade. Where there is government interference with business, free trade even in the short run would frustrate the aims sought by the various interventionist measures.

Human Action, p. 682; p. 686

The philosophy of protectionism is a philosophy of war. The wars of our age are not at variance with popular economic doctrines; they are, on the contrary, the inescapable result of a consistent application of these doctrines.

Human Action, p. 683; p. 687

Government does not have the power to encourage one branch of production except by curtailing other branches. It withdraws the factors of production from those branches in which the unhampered market would employ them and directs them into other branches.

Human Action, p. 737; p. 744

The slogan “Away with foreign goods!” would lead us, if we accepted all its implications, to abolish the division of labor altogether. For the principle that makes the international division of labor seem advantageous is precisely the principle which recommends division of labor in any circumstances.

Socialism, p. 288

Protectionism and autarky always result in shifting production from the centers where conditions are more favorable—i.e., from where the output for the same amount of physical input is higher—to centers where they are less favorable. The more productive resources remain unused while the less productive are utilized. The effect is a general drop in the productivity of human effort, and thereby a lowering of the standard of living all over the world.

Omnipotent Government, p. 73

People favor discrimination and privileges because they do not realize that they themselves are consumers and as such must foot the bill. In the case of protectionism, for example, they believe that only the foreigners against whom the import duties discriminate are hurt. It is true the foreigners are hurt, but not they alone: the consumers who must pay higher prices suffer with them.

Omnipotent Government, p. 183

In the long run there cannot be such a thing as “moderate” protectionism. If people regard imports as an injury, they will not stop anywhere on the way toward autarky. Why tolerate an evil if there seems to be a way to get rid of it?

Omnipotent Government, p. 250

From the purely economic point of view nothing speaks against free trade and everything against protectionism.

Nation, State, and Economy, p. 64

Hunger and anarchy—that is the result of the protectionist policy.

Nation, State, and Economy, p. 75

Every restriction of trade creates vested interests that are from then onward opposed to its removal.

The Theory of Money and Credit, p. 288