India and China

India and China And finally, if the infant-industry argument has any validity at all, this country, of all nations, would seem. to be the last one to need it. Any usefulness of this pro cedure would seem to be in countries like India and China where industry is weak or nonexistent. Why don't the Chinese have a tariff to exclude our automobiles and radios until such time as they develop their own indus tries and can manufacture these products? In a roundabout way, we are partially doing this for various countries through some of our give-away foreign aid schemes. We give the "backward" nations money that is often used as a subsidy to make up the difference between their costs of production and ours. Our gifts often encourage them to continue some inefficient or questionable production. In some respects, the receiving nations regard this in the same way they regard the idea of imposing a tariff against our goods to equalize this difference-"It is only fair." And some of us have added to the general confusion by accepting the fallacious idea that we would suffer a depression at home if we stopped giving away our products abroad.

Another illustration of the inconsistencies which arise when governments try to "do something" for other na52.