Tariff From Infant Industries
Alexander Hamilton proposed .to the growth of manufacturing by protecting “infant industries” &om foreign competition. According· to this doctrine, which received the cautious support economists like John Stan Mill and Mar Shall, there are lines of production in which a country could have a comparative attractant if only could get started.
This argument must be weighed cautiously. Historical studies have turned up some genuine cases of protected infant industries that grew up to stand on their own feet. And studies of successful newly industrialized countries (such as Singapore and Tail) show that they have often protected their manufacturing industries from imports during the early stages of industrialization. But subsidies will be a more efficient and transparent way of nurturing young industries. In fact, the history of tariffs reveals many cases like steel, sugar, and textiles in which perpetually protected infants have not shed their” diapers after lo these many years.