Americans Seem Fine with Protectionism as Long as It's Costless
Aug 13, 2024
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Scott Lincicome, a trade policy expert, and Emily Ekins, a public opinion researcher, dive into new polling data revealing how Americans view protectionism. They discuss the conflict between supporting 'Buy American' initiatives and the potential costs consumers face. Lincicome and Ekins highlight a significant disconnect between public anxiety over inflation and the allure of tariffs. The conversation sheds light on how education can reshape perceptions about trade, creating an intriguing dynamic in the ongoing debate over economic policies.
Americans generally desire to support domestic manufacturing, but they resist spending more on American-made products due to financial concerns.
Polling reveals that public support for protectionism is often influenced by political alignment rather than a genuine understanding of economic impacts.
Deep dives
Americans' Views on Tariffs and Protectionism
Poll results indicate that Americans have complex views regarding tariffs and protectionism, often influenced by economic realities. While a desire to support American businesses and jobs exists, many individuals hesitate to pay higher prices for American-made products. For instance, when asked if they would be willing to spend an additional $10 for a pair of blue jeans to support American manufacturing, most respondents indicated they would not. This reluctance highlights a significant disconnect between the desire to promote American goods and the practical impact on their finances.
The Disconnect Between Political Rhetoric and Public Opinion
Despite the belief among some politicians and pundits that there is a strong demand for protectionist measures, recent polling suggests otherwise. Many Americans generally favor increased trade, with over 60% of respondents supporting trade expansion rather than restrictions. The stark partisan divide in opinions expressed by respondents regarding tariffs introduced by different political leaders reveals that support for protectionism is often driven more by political alignment than genuine economic concern. Overall, this indicates that the narrative surrounding protectionism may be more reflective of elite political discourse than widespread public sentiment.
Influence of Economic Knowledge on Public Perception
The level of understanding regarding economic principles, including trade deficits, significantly influences public opinion. Findings show that many Americans lack a clear understanding of how tariffs affect prices and do not recognize that trade deficits can lead to investments returning to the U.S. When presented with basic economic concepts, individuals often shift their views and gain a more nuanced understanding of trade issues. This illustrates the necessity for policymakers to educate the public about the implications of trade policies and their effects on the economy, as better-informed citizens can lead to more constructive discussions on trade.
New polling from the Cato Institute asks Americans to weigh their preferences for Buy American policies against the very real likelihood that protectionism will hit them in their pocketbooks. Scott Lincicome and Emily Ekins detail the results.