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THE NEW PROTECTIONISM

It can have only two chief and inevitable effects.

1. It would reduce our aggregate national income, and so our resources alike for armed defence upon the one hand, economic defence upon the other. How can the advocates of a policy which diminishes our funds alike for education, scientific experimentation, and technical equipment (the supreme needs for successful competition with Germany) plead "defence"?

2. It wastes the sources of public revenue. A large proportion of the gross yield of a tariff is consumed in expenses of collection. By enabling protected industries to raise their prices it throws on consumers a burden of payment vastly greater than the gain to public revenue. The incidence of this burden is heaviest on the poorer working classes, for the prices of the necessaries of life are subject to the greatest increase. Thus the standard of living of the workers is depressed and their productive efficiency impaired.

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