Conclusion
In this essay we have analyzed protectionism in three dominant segments of the U.S. economy - Textiles, Steel, and Agriculture, in the political and economic context. The textile segment depicts the dominance of electoral politics in the U.S. trade policies. Protectionism in the steel industry, and its social implications were explained using an extension to the Grossman - Helpman model. The Aluminum industry case brought into light a new dimension of protectionism, and the bias of the U.S. government towards this industry. The importance of agricultural subsidies in the U.S. trade policies was explained by the need to maintain a balanced social structure in view of the increased competition in the international arena.
Some results of protectionism are:
* Sectors that have low wages and high labor to output ratio i.e. high voter strength are more likely to ask for and get protectionism. Therefore, it can be argued that protectionism favors localized low-income groups.
…
