… is from this August 17th, 1970, Newsweek column by Milton Friedman:
Japan does impose numerous restrictions on trade …. Those trade restrictions hurt Japan and they hurt us—by denying them and us mutually profitable trade. In Japan no less than in the U.S., concentrated producers exert a greater influence on government than widely diffused consumers and are able to persuade the government to fleece the consumer for the benefit of the producers.
However, we only increase the hurt to us—and also to them—by imposing additional restrictions in our turn. The wise course for us is precisely the opposite—to move unilaterally toward free trade. If they still choose to impose restrictions, that is too bad but at least we have not added insult to injury.
DBx: Of course, what was true on this economic front 50 years ago about Japan is no less true on this economic front today about China (and every other country or region that you care to name).
