Why some people argue that protectionism is bad for the economy?
Some argue somewhere after World War I, many nations were nationalize and use protection laws to protect their good. It leaded to a massive depression, unemployment, and started World War II.
I disagree because during that period the world just ended World War I, that changed the world. Many nations like Germany did not recover from World War I. Some did like the United States up into the Great Depression , which the reason of it was not protectionism.
- 2 months agoFavorite Answer
Protectionism had nothing to do with it, it was the crushing penalties imposed on Germany for losing WWI. The Great Depression in America was caused by either the stock market crash, or the Fed severely cutting the money supply (the latter, actually).
Protectionism is one of the few bulwarks against globalism collapsing the standard of living for most people.