What Is Free Trade? - An Adaptation of Frederic Bastiat's "Sophismes Éconimiques" Designed for the American Reader by Frédéric Bastiat
page 74 of 142 (52%)
page 74 of 142 (52%)
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many millions more in order to replace them by _artificial obstacles_,
which have exactly the same effect; so that the obstacle removed and the obstacle created, neutralize each other, things go on as before, and the only result of our trouble is a double expense. An article of Canadian production is worth, at Montreal, twenty dollars, and, from the expenses of transportation, thirty dollars at New York. A similar article of New York manufacture costs forty dollars. What is our course under these circumstances? First, we impose a duty of at least ten dollars on the Canadian article, so as to raise its price to a level with that of the New York one--the government, withal, paying numerous officials to attend to the levying of this duty. The article thus pays ten dollars for transportation, and ten for the tax. This done, we say to ourselves: Transportation between Montreal and New York is very dear; let us spend two or three millions in railways, and we will reduce it one-half. Evidently the result of such a course will be to get the Canadian article at New York for thirty-five dollars, viz.: 20 dollars--price at Montreal. 10 " duty. 5 " transportation by railway. -- 35 dollars--total, or market price at New York. Could we not have attained the same end by lowering the tariff to five |
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