Protectionism and Free Trade

Mises Institute President Tom DiLorenzo joins Ryan McMaken to look at the many ways that the taxes, known as "tariffs," destroy wealth and empower the state. 

It is a benefit of sound economic theory that it proves very useful in the refutation of popular fallacies and misconceptions about the workings of the market economy.

Tariffs don‘t just raise consumer prices. They also affect capital flows and, on numerous occasions, have triggered stock market crises. What tariffs don‘t bring is prosperity.

One of the oldest and most harmful economic fallacies is the belief that, at best, economic exchange is a zero-sum activity. However, free exchange in an unhampered market is always positive.

Bob discusses common talking points that pro-free-trade economists often use when making the case against tariffs.

Critics of free markets claim that the 1980s and 90s were near-pure laissez-faire when, in reality, the regulatory state only got stronger. 

The iron law of prohibition states that the more you attempt to enforce prohibition, the more dangerous and the more potent the drugs actually become.

While the US Constitution made the US a large free trade zone, prohibiting states from erecting trade barriers against each other, it also empowered the central government to erect tariffs on goods imported from outside the country. 

Tariffs don‘t just raise consumer prices. They also affect capital flows and, on numerous occasions, have triggered stock market crises. What tariffs don‘t bring is prosperity.

Mises Fellow Kristoffer Hansen joins Bob to discuss the controversy surrounding Mises' perspective on fractional reserve banking and free banking.