The Weakness of Protectionism

The Real Estate Espresso Podcast

The Weakness of Protectionism

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The Weakness of Protectionism: A Real Estate Espresso Podcast Summary

Welcome, let’s discuss the intriguing concept of protectionism in the world economies. If you missed the episode or need a quick refresher, this summary will delve into the key insights shared.

The Concept of Protectionism

Protectionism seems to be sweeping several parts of the world’s major economies today. Based on the philosophy of business scarcity, protectionism is the belief that foreign companies offering lower prices, or migrants willing to work for less money, will dominate the market, causing local businesses and jobs to suffer. This perception leads to the curtailing of immigration and the implementation of protectionist measures to shield local businesses and job markets.

Repercussions of Protectionism

When we explore the implications of protectionism, the Brexit vote in the UK offers a prime example. Decided by a meager 2% majority, the move to leave the European Union (EU) has been fraught with consequences. Four and a half years on, the overwhelming majority of Britons now believe that Brexit was a mistake. There are estimates that Brexit might have resulted in around two million job losses in the UK. More stiffly, protectionism has only helped businesses remain uncompetitive for longer, eventually threatening them with extinction.

Protectionism: Key Insights
The concept of protectionism is based on the philosophy of business scarcity
Brexit is one of the major examples of a protectionist measure
Protectionism might help businesses remain uncompetitive for longer
It has long-term consequences like job losses and market disruption
In the long run, protectionism is a weak strategy that can backfire

As the global economy expands and interlinks, protectionism is becoming an increasingly inefficient measure. Sanctions and duties can be bypassed, and global supply and demand fluctuations often do not align with protectionist policies. Ultimately, protectionism tends to create a false sense of security and competitiveness that could weaken a nation’s global standing in the long run.

Keep the discussion going and join me, Victor Menasce, in the upcoming episodes of the Real Estate Espresso Podcast where we will continue to dissect relevant topics and concepts!

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