04-25-2005, 06:58 PM
PestesiaApr 25 2005, 02:55 PM you have to undestand that some national businesses (e.g. in my country) can in no way compete with big multinationals, even if they work their asses off. [/quote]
But why not choose to do something else? For (RL) example, it is pointless to have much labour-intensive industry in Western Europe. The same thing can be produced for basically the same quality much cheaper elsewhere. So you don't fund that as a government, but you try to focus on other things. Knowledge-intensive industry, luxury goods, that kind of employment. Either specialize into a different area, or do something else in the same sector.
Funding your own industry only makes sense when you're trying to start something up. An existing industry which is deminishing due to global economic shifts shouldn't be supported by tariffs. You're creating a very unhealthy environment where the quality of the product is not related to the price people have to pay for it. You're making stuff more expensive for your people.
It could even be worse. The EU agricultural policy means that food is more expensive here because of tariffs, and we produce too much. What we have left over (beef, for example) is dumped on African markets for next to nothing. "Ah, cheap food for the starving Africans" is what one'd think, but in fact it ruins the local food producers and makes the people dependent on our leftovers.
Groot Gouda is productive by policy which is focused on quality, rather than quantity. Good working conditions, minimum wage, all those mean we have happy, productive workers. Education is a priority for our services sector. That's how we "protect" our economy. Invest in the long term.
But why not choose to do something else? For (RL) example, it is pointless to have much labour-intensive industry in Western Europe. The same thing can be produced for basically the same quality much cheaper elsewhere. So you don't fund that as a government, but you try to focus on other things. Knowledge-intensive industry, luxury goods, that kind of employment. Either specialize into a different area, or do something else in the same sector.
Funding your own industry only makes sense when you're trying to start something up. An existing industry which is deminishing due to global economic shifts shouldn't be supported by tariffs. You're creating a very unhealthy environment where the quality of the product is not related to the price people have to pay for it. You're making stuff more expensive for your people.
It could even be worse. The EU agricultural policy means that food is more expensive here because of tariffs, and we produce too much. What we have left over (beef, for example) is dumped on African markets for next to nothing. "Ah, cheap food for the starving Africans" is what one'd think, but in fact it ruins the local food producers and makes the people dependent on our leftovers.
Groot Gouda is productive by policy which is focused on quality, rather than quantity. Good working conditions, minimum wage, all those mean we have happy, productive workers. Education is a priority for our services sector. That's how we "protect" our economy. Invest in the long term.