Protectionism stifles growth from "summary" of Capitalism and Freedom by Milton Friedman
Protectionism, the practice of imposing restrictions on trade with other countries, is often seen as a way to protect domestic industries from foreign competition. However, protectionism can have negative consequences for economic growth. When a country restricts trade, it limits the ability of its domestic industries to access new markets and take advantage of economies of scale. This can lead to higher prices for consumers and less innovation in the economy. By limiting competition, protectionism can also lead to inefficiency in domestic industries. Without the pressure to improve and innovate in order to compete with foreign rivals, domestic industries may become complacent and less productive. This can ultimately harm the overall competitiveness of the economy and l...
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