What is meant by the employment argument which is used by some national governments to justify protecting certain domestic industries? Provide a real world example to illustrate your answer.

Question

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The Answer is The employment argument is used by some national governments to justify protecting certain domestic industries in order to preserve jobs for their citizens. This argument suggests that if the government allows foreign competition to enter the market, it could lead to job losses in the domestic industry, which would have negative effects on the economy and the livelihoods of the workers.

A real-world example of this can be seen in the United States' steel industry. The U.S. government has implemented tariffs on imported steel in an effort to protect domestic steel producers and preserve jobs in the industry. The argument is that allowing cheaper foreign steel to flood the market would lead to layoffs and closures of domestic steel plants, resulting in a loss of jobs for American workers.

However, critics of this approach argue that protectionist measures like tariffs can also lead to higher prices for consumers and retaliation from other countries, ultimately harming the overall economy. They argue that it may be more beneficial to focus on retraining and supporting workers in declining industries, rather than trying to artificially prop up uncompetitive domestic industries.

What Is Meant by the Employment Argument Which Is Used