Julia Carle, Chapter 12, Question #7

After reading chapter twelve, I learned the pros and cons of protectionism and how it can be beneficial in the short run, but in the long run destructive towards the economy. I always wondered before reading this chapter whether foreign trading with countries such as China for goods was a bad way to run things. My thinking was that if all these Americans can buy a Chinese made pack of pencils for $1.00 versus the American made pack for $2.99, the person would most likely choose the Chinese made pack, which means that Chinese goods are more prosperous than American goods, meaning that Americans will lose jobs from lack of factory's prosperity. This concept of protectionism was new to me, but now I realize there really is no good simple solution. If you decide to save American jobs by. Cutting off trade from foreign countries such as China, you run the risk of destroying the economy eventually. And trading a ton with these foreign countries will put many Americans out of work. Before reading this chapter, I didn't quite realize how complex the conflict is.