Breaking the Demand-Supply Law

Once you understand the Law of Demand and Supply, you master Economics 101.

   When consumers want something and it's not available nearby at a reasonable price, they go elsewhere. 
   This principle applies whether it's about one person looking for a cup of coffee or it's about an entire retail chain searching for a new supply of beans.
   If, for example, the U.S. government imposes a tariff on coffee beans from Honduras to protect growers in America, the cost of Honduran beans will go up to cover the tariff, and U.S. growers will either maintain their price level as the competition lessens, or they will raise their prices to boost profits, for the same reason -- less competition.
   Say what? There are few, if any, coffee bean growers in America?
   All the more reason, then, to impose the import tax as a way to encourage a new domestic business activity.
   But it takes years to plant, grow, harvest and distribute a new crop, you object.
   That's OK, the government replies. We have to protect those who invest in the new industry from unfair competition.
   Our resident cynic, Pug Mahoney, notes that to such as these, "unfair competition" is when the other guy sometimes wins. The underlying attitude is that "fair" competition means that they win everything all the time and the other guy always loses.
   Besides, they point out, "those other guys are only ____ anyway, so they don't matter."
   
   Those who suspect a touch of bigotry or racism behind such an attitude are likely correct, and could easily recite numerous examples in American history when attitudes like that were widespread, and applied to earlier groups of newcomers. Moreover, similar examples show up in the history of other nations.

      Now consider the current flap to keep out stuff made in China in order to "protect" American makers. The result will be that less stuff will come from China or it will be more expensive. Meanwhile, Chinese firms will look to other markets, so consumers in other countries will benefit from the availability of lower priced stuff from China. Once again, the Law of Demand and Supply is enforced, as suppliers look to other markets and consumers seek new suppliers.