5. In 2002, President George W. Bush imposed tariffs on certain types of imported steel. He argued...
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5. In 2002, President George W. Bush imposed tariffs on certain types of imported steel. He argued that for- eign steel producers were dumping their steel on the U.S. market at low prices. The foreign steel producers were able to sell steel cheaply because they received subsidies from their governments. The Bush adminis- tration argued that the influx of steel was disrupting the U.S. economy, harming the domestic steel indus- try, and causing unemployment among U.S. steel workers. What might a classical economist say in response to these claims? Would a Keynesian econo- mist be more or less sympathetic to the imposition of tariffs? Why?
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