… is from Ludwig von Mises’s 1958 essay “Foreign Investment“:
The only way to increase industrialization is to have more capital. Protectionism can only divert investments from one branch of business to another branch.
Protectionism, in itself, does not add anything to the capital of a country. To start a new factory one needs capital. To improve an already existing factory one needs capital, and not a tariff.
DBx: Indeed. Yet the alleged entrepreneurial genius who now resides as head carnival barker at 1600 Pennsylvania Ave, NW, does not grasp this most basic of economic truths.