Trade Restrictions Stick It To Consumers

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The Article

The Washington Post wants us to think that Anita Dungey won a heroic small-business victory over big business. But all she really did was stick it to American consumers and punish workers in some poor country.

Dungey’s family owns Auburn Leathercrafters in upstate New York, a company that makes dog collars and leashes, some as expensive as $100. Thanks to a tariff on its foreign competitors, Leathercrafters can charge more for its products than it could charge in a free and competitive market.

Recently Dungey discovered that Congress, exercising a little-known power and urged on by Wal-Mart, was about to suspend the tariff for three years. She panicked. Loss of the restriction on her competitors would have been “devastating” for her, she said. “The suspension is . . . just about long enough to put most of the small guys out of business.”

John Stossel
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