Tariffs Lower Level of Living

Tariffs and Infant Industries Another argument for tariffs is that new industries cannot survive if they must compete with firmly estab lished industries in other countries-"Give them a chance to get established, and then they can compete." History has shown that protection in the form of tar iffs imposed for this reason is difficult, if not impossible, to throw off. The protected infant never grows up to attain self-responsibility. And little wonder! In any in dustry, protected or not, there are firms which are barely able to stay in business-even though other firms in the same industry are operated profitably. If the crutch of 50 tariffs is removed, these marginal producers must either improve their efficiency or go out of business. If they can do the .former, why didn't they do it before the crutch was removed? Who is to say that a prospective new industry will eventually become a successful one? Government of cials?-or businessmen who know something about the industry? Businessmen are accustomed to taking risks; and the capital will be found to finance a business through its formative years if its prospects appear prom ising enough.