Planet Money Episode 632: The Chicken Tax Include a discussion of what the story of the chicken tax taught you about the pros and cons of trade. Address the question, who gains and who loses as a result of the imposition of the chicken tax? An example from a student: Chicken tax taught me about the pros and cons of trade. The chicken tax was placed by the Germans on frozen American chicken in order to protect their farmers who were losing profits and were unable to sell their expensive chickens. This embodies the idea of trade because one country could have something beneficial to another country and vice versa. However, this also embodies the problems with trading freely and the fact that some party will be hurt by it.One of the pros of the chicken tax was that it taught me about bargaining power. The chicken tax is still being used to this day, and it is being used as a bargaining tool in order to enter new trade deals that are in the works. This is also tied to the idea that once a tax or tariff is created, it is very hard for it to go away and there are little incentives for this. This showcases the importance of creating taxes.One of the cons of the chicken tax is that there is an extra charge that is directly impacting consumers and businesses alike. Additionally, like mentioned before, once a tax is put in place, it is very hard to get rid of. As a final point, not encouraging free trade is harmful to society because there is less innovation to change the products on the market, and more incentives to circumvent the taxes instead of improving the product