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Geography

The Political Economy of Trade Protectionism in Democratic States

Quick fact

In democratic countries, a handful of job losses from imports in a single district can sway an entire election, even if millions of consumers save money. That's because the pain of trade is concentrated and the benefits are spread thin.

Why this is interesting

Nearly every economist agrees that free trade makes countries richer overall. Yet, why do democratic governments still cling to tariffs and quotas that seem to harm the majority of their citizens?