Arnold Kling  

Anti Anti-dumping

Holding Pen Update... A Framing Puzzle...

Greg Mankiw and Phillip L. Swagel write,

In February, seven of nine newly elected senators publicly endorsed the Byrd Amendment, a provision that encourages American companies to file antidumping lawsuits by awarding the revenues collected from the resulting tariffs to the litigating companies.

... If a foreign firm sells its product in the U.S. market at too attractive a price, domestic firms can threaten it with an antidumping suit that will lead to hefty tariffs and higher prices.

It is easy to see why anti-dumping is, as Mankiw calls it, a "third rail" that no politician wants to touch. Asking a politician to come out against rent-seeking is like asking a prostitute to come out against exchanging money for sex.

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CATEGORIES: International Trade

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The author at Leviathan Slayer in a related article titled the senator from the kkk, dumping and prostitutes writes:
    Via Econlog, we see that Senator Byrd has introduced an bill that would award money from tariffs to American businesses that successfully file "anti-dumping" lawsuits against foreign companies [Tracked on August 20, 2005 10:09 AM]
COMMENTS (3 to date)
Fazal Majid writes:

Now, now, there is no reason to be so scathing of prostitutes...

Brock writes:

So how do we change their incentives?

wing writes:

what about consumer's interest?

would that serve as some sort of check and balance

and hopefully strke some sort of balance, taking into account: jobs, pay, industry, consumers

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