Protectionism creates government failure because tariffs and subsidies create large gains for a small group of people who lobby government.

Question

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Protectionism policies such as tariffs and subsidies often benefit a small group of people or industries, leading to intense lobbying efforts by those groups. This creates an uneven playing field and can result in inefficient allocation of resources, leading to government failure.

Protectionism Creates Government Failure Because Tariffs and Subsidies Create Large