Economics in One Lesson: Part 7 | Mark Thornton

Recorded during the 2008 Mises University, Jeffrey Tucker interviews Mark Thornton on the topic of Henry Hazlitt's classic book "Economics in One Lesson." This is the seventh in a series of twelve interviews with leading Austrian Economists discussing each chapter of Hazlitt's book.

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[RMMHS4RP]

If you abandon protectionism, all you lose is a bunch of taxes that rip off the majority for the sake of a politically connected minority.

Self-sufficiency has never been the motivation for a particular industry to seek tariffs or import quotas. It's always about using the government to secure special privileges that shield certain firms from competitors who happen to be located in other countries.

In any case, complete self-sufficiency, or autarky, is neither achievable nor desirable.

[RMMHS4RP]

What they say about sugar "protection" is true. I used to live in a city that had a LifeSavers factory. A few years ago, the factory closed and moved to... Canada. Because they don't have A) sugar quotas, or B) an embargo on Cuba.

So much for the idea that trade restrictions protect the few with no consequences for the many.

Also, what Tucker says about Mexican Coke is absolutely true. I love Manzana Lift, too, an apple-flavored pop that I've never seen for sale in the U. S.

[tabletalk33]

Thanks for that post! Very good.

[RKAddict101]

@kaitenuser I'm necroposting, but Hazlitt answers this. In his book, he's merely speaking against the fallacy that protectionism increases employment or raises real wages, etc. (economic fallacies). However, if a government was putting up a tariff or blocking trade for other reasons, such as keeping their military self-sufficient, etc., it wouldn't necessarily be incorrect and that would be more of a political decision.

[kjakobsen]

Self-sufficiency is so overrated.

To give an example if you personally wanted to be self-sufficient, you would have to raise your own chickens, pigs, cows. And grow your own vegetables, fruits and crops. Then you would need to know, how to butcher the animals, harvest the crops, make your own bread. Fix your own house and i guess you get the picture.

A country COULD be self-sufficient, just like a person could, but it would be hard work, and nowhere near worth the cost.

[stealthswimmer]

probably. all soda in the US has high fructose corn syrup. Coke from Mexico is made with sugar and tastes better, but the Coke from the US is made with High Fructose Corn Syrup cus the US has sugar quotas and also cus we subsidize corn, so we end up with more corn than we actually need and a lotta that gets exported and a lot gets used for high fructose corn syrup. Lots of unintended consequences from something as simple as subsidizing a crop and "protecting" another.

[Jaycephus01]

I have a theory that New Coke was all about the change to Corn Syrup. Of course, people hated it, and wanted real coke back. So Coca Cola came back with Classic Coke, and then at some point later just substituted Corn Syrup for sugar anyway.

[kaitenuser]

Quick Question: When you abandon Protectionalism, isn't it true you lose your ability to be self-sufficient?

[RMMHS4RP]

And now we come to find out that HFCS has mercury in it, too. Man, I love how my government takes care of me...

[justingaylor]

I like his statement about how the idea of negotiating our way to free trade is ridiculous! Definitely true.

[justingaylor]

I have totally drank Mexican Coke with real sugar! It is WAY BETTER!!! I couldn't believe it when I drank it that I could tell the difference.

It appears that the molecules in high-fructose corn syrup are much more compex than sucrose (simple sugar), therefore our bodies have more difficulty breaking them down.