3. The Employment Argument.
Protection provides ample opportunity for the industrial
expansion. In the absence of protection the home industry can not
expand. This may create unemployment in the economy. A burning
example is the decay of cottage industry especially the Indian
handicrafts; in the 19th century which threw artisans and workers
into the 'mire' of poverty.
4. Conservation of National Resources Argument
National resources are the costliest assets of a country. In
Free Trade, the export of natural resources may occur which is not
fruitful for the exporting country. American economists Carey and
Hatten also argument against the export of agricultural commodities
from America; since it exhausted the natural quality of the soil.
Similar voice was raised by the British economist Javons, who
voted against the export of coal from the British coal fields.
Ruthless exhaustion of resources may make the economy crippled
after a period of time.
5. The Defence Argument
The feeling of protection from external aggression is
essential for the peaceful development of the industries. Adam
Smith has once remarked, ": Defence is better than opulance ". The
Military strength of an economy is prior to its development. An
active encouragement to defence industries is a must according to
this view. For defence even an uneconomic distribution of
resources is not objectionable.
This argument has been criticised by the advocates of Free
Trade on the ground that it is more a political argument than being
an economic one in its essence.
6. Key Industry Argument
Development of key Industries is highly essential for
providing stability and basic function to the economic growth.
Without their development it is like jumping into dark. Protection is
must for the safe development of the key industries.
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