Source: Independent Institute
by Phillip W Magness & David J Hebert
“Of all the arguments for protectionism, the infant industry argument probably has the strongest theoretical appeal. By protecting a new industry from its more developed foreign competition, the story goes, tariffs give domestic producers the time to grow, learn, and become efficient enough to stand on their own. Domestic consumers feel the short-term pains of higher prices, but they enjoy the long-term gains of job growth and lower prices as the new industry blossoms. … When Hamilton made this claim in 1791, his argument may have seemed suitable for a new nation seeking to firm up its economy and security against established European powers. … Nearly 250 years later, those same infants apparently have yet to advance into adulthood.” (10/23/26)
https://www.independent.org/article/2026/10/23/peter-pan-tariffs-for-companies-that-never-grow-up/