Protectionism’s Role in a Volatile World
Uncertainty, whether sparked by financial turmoil, pandemics, geopolitical tensions, or abrupt technological shifts, exerts pressures that steer governments and voters toward protectionist measures. Such protectionism emerges from fear, political incentives, and calculated strategy. This article explores the forces that revive protectionism during difficult periods, illustrates them through historical and contemporary examples, analyzes the economic mechanisms and outcomes involved, and presents policy alternatives that can lessen the impulse to withdraw behind trade barriers.Past patterns and more recent examplesProtectionism is not a modern anomaly. The 1930s Smoot-Hawley tariffs are the classic example: the United States raised tariffs in an effort to shield…
