The debate between protectionism and free trade is an issue that has been discussed for centuries throughout every nation. The main question is : Are protectionist policies are bad for America? The answer would be “no”. This is due to the fact that, while international competition from businesses benefits individual consumers, it takes away from the American economy. This in turn means America is losing money that can be income for another, or a source of investment that contributes to the growth of the country. The purpose of a protective tariff is to place a tax on foreign goods that are imported to a country as a way to protect domestic industries from international competition. The downside that has been stated is that it is damaging to the consumer since they aren't given the option to purchase the less expensive foreign goods. The benefits of the tariffs is that more money is going into the economy which places the tariff, in this case it is America. This disproves Rothbard's claim that inter-national tariffs are as absurd as inter-state tariffs; inter-states tariffs are absurd because they don't help the national economy, while international tariffs do. The argument for free trade focuses on the benefits for the consumer, but these benefits only last temporarily. Based on the circular flow of the economy, it is known that one's man spending is another man's income. This spending multiplies throughout the economy as the new income generates more income, thus further increasing the GDP of the country. This means that every purchase inside of a country makes the country better off than it was before. While it is hard for a single individual to see the benefits of this, it has a very important effect on the entire country... ... middle of paper ... ...pendence comes from maintaining domestic industries. In order to support these domestic industries, the American people must be loyal to their domestic economy. This comes from the use of protective tariffs to encourage consumption and investments within the country. In conclusion, there are numerous benefits to the use of protective tariffs that affirms the answer to the question stated at the top. The most obvious benefit to using a protective tariff is that it encourages domestic spending which can multiply further throughout the economy. The increase in investments that come from this creates long-run economic growth which foster long-term improvements in the economy. They also encourage foreign manufacturers to improve their goods as a way to increase foreign sales. Finally, it leads to economic autonomy that makes gives a country more control over its economy.