Aleksandra Dunaeva

In theory, the price mechanism works. In theory, shortages in markets are rare and, when they occur at all, temporary. Unfortunately, reality is often a different story.” This is a frequent criticism...

Entrepreneurs are not easily thwarted by government intervention, writes Don Mathews. Sometimes entrepreneurs respond so creatively that they render the interventionist measure almost meaningless. A classic example of an entrepreneurial response to state-sponsored plunder is the case of the US anti-dumping tariff on imported shrimp. Total shrimp imports to the United States have increased by 14 percent since the tariff was imposed, while domestic shrimp prices have decreased by 9 percent. Also, US shrimp imports from the six countries targeted by the tariff have increased by almost 20 percent since the tariff was imposed.