Simply put, there is no reason to produce other than to consume, and there is no reason to produce anything that people do not want to consume.
DBx: As obvious as this statement is, it is denied by many protectionists, including Oren Cass and Robert Lighthizer. In part, this protectionist denial of a truth that should be – and, to economically informed people, actually is – self-evident, is due to protectionists’ overly narrow understanding of what economists mean by “consume” and “consumption.” But in other part, protectionists’ denial of this self-evident truth is explained by the simple convenience of issuing such a denial to try to bolster protectionists’ inherently weak arguments.
Although, à la Adam Smith, no further proof of this self-evident truth should be needed, the false allure of protectionism is so powerful that offering further proof is warranted. So here it is: Things that people must be paid to part with – including their time, effort, and risk-taking – are not ends in themselves; they are means to an end. And this end is consumption. Because people must be paid to work or to otherwise produce, work and production are not ends in themselves. Work and other productive activities are not their own rewards (which is why people must be paid to engage in these activities). In contrast, things that people willingly pay to experience – that is, things that for which people intentionally reduce their net economic worth in order to experience – are consumption goods and activities. These activities are economic ends – and they can and do include a better work-life balance, as well as remaining in jobs that pay less but are more satisfying.
