The political economy follows a pattern: concentrated benefits, diffuse costs.
The protected industry sees the gain clearly. A factory, a union, a district.
The cost is spread across millions of consumers — estimated ~$1,500 per US household this year. Each household pays a small amount. No one organizes around it.
This is why tariffs persist. Not because they optimize the system — but because the incentives of the people who set policy are different from the incentives of the people who pay.
The protected industry sees the gain clearly. A factory, a union, a district.
The cost is spread across millions of consumers — estimated ~$1,500 per US household this year. Each household pays a small amount. No one organizes around it.
This is why tariffs persist. Not because they optimize the system — but because the incentives of the people who set policy are different from the incentives of the people who pay.
1
