USA Today is worried that the economic slowdown may cause countries to impose higher tariff barriers on merchandise trade. But will it also lead professionals like doctors and lawyers to make it more difficult for foreign professionals from entering these fields. If so, this can cost the consumers tens of billions of dollars in higher prices for professional services and the economy tens of billions of dollars in lost output. Will the downturn cause the government to devote increased resources towards cracking down on unauthorized copies of copyrighted material or unauthorized imports of prescription drugs? These protectionist policies can also raises costs to consumers by tens of billions of dollars. USA Today is silent on these costly forms of protectionism, focusing only on the narrow category of merchandise trade.
--Dean Baker
