Friday, May 8, 2015

Are tariffs on imports morally justified?

I was thinking whether placing tariffs on imports by the government is morally the right thing to do. Amongst the arguments in favour of imports are the benefits to the people on the importing country as they get to enjoy a better and diversified range of products and the profits earned by the foreign companies who are selling to the importing country. Among  the arguments against imports include the excess competition generated by the incoming foreign products in the domestic market which results in many domestic firms to get driven out. Also, the government does not get to earn revenue from tariff which it could utilize it on the citizens of its own country. Now, since there are chances of many domestic firms being driven out of the industry meaning that many poeple will lose jobs, it might seem that according to the egoisitic welfare consequentiliast, tariffs are justified where the agent in consideration is someone from the domestic country who risks losing his or her job. Obviously, a job results in welfare.  However, that being said, with tariffs, the same person who is in risk of losing his job, misses out on the better and diversified range of imported products. So, the agent stays the same but there are contrasting effects on the agent which makes it difficult to anticipate what the egoistic welfare consequentialist will eventually have to say about the moral status of tariffs on imports. Also, what about the overall effects of tariffs on the intrinsic value simpliciter of the universe accorging to universalistic welfare consequentialists?  

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