Trade wars aren’t just about economics—they might be fueling backdoor deals and political favors, according to economist Steve Hanke. 🕵️♂️ In a striking analysis, Hanke argues that U.S. tariffs are becoming a “catalyst” for corruption as politicians increasingly rely on lobbyists to carve out exemptions for favored industries.
Why It Matters 🌍💼
Protectionist policies like tariffs often sound like simple tools to shield domestic jobs. But Hanke warns they create a “double-edged sword”: While aiming to protect industries, they incentivize companies to lobby politicians for special treatment, turning trade policy into a “golden ticket” for the well-connected. 🎫💸
\"When you build a wall of tariffs, you also build a market for loopholes,\" Hanke said, comparing the process to a real-life version of House of Cards. 🃏
The Bigger Picture 🔍
This isn’t just about trade deficits—it’s about how policy shapes behavior. Hanke’s research suggests that protectionism encourages \"rent-seeking,\" where businesses focus more on winning political favors than innovating. For young professionals and entrepreneurs, this could mean fewer opportunities in a less competitive global market.
Students and academics, take note: The next chapter in globalization might hinge on transparency—or the lack of it. 📚✨
