Chapter 18: Problem 4

Why might legislators vote to impose a tariff on Egyptian cotton, when consumers in their districts would benefit from its availability?

Short Answer

Expert verified

Legislators might vote to impose a tariff on Egyptian cotton for various reasons, such as protecting domestic cotton producers from foreign competition, preserving jobs in their districts, gaining political support from interest groups, generating government revenue, and responding to geopolitical factors or disputes with Egypt. Despite the potential benefits to consumers from the availability of Egyptian cotton, these factors may motivate legislators to support tariffs on this imported cotton.

Step by step solution

Economic Protectionism

Legislators might impose a tariff on Egyptian cotton to protect domestic cotton producers from foreign competition. By imposing a tariff, they can increase the price of imported cotton, making domestic cotton more competitive in the market.

Preserve Domestic Jobs

Voting for tariffs may be a way for legislators to preserve domestic jobs in their districts. If domestic cotton producers are unable to compete with cheaper Egyptian cotton, they may be forced to close down or reduce their workforce. By implementing tariffs, the legislators can help maintain these jobs and keep unemployment rates low in their districts.

Political Support

Legislators might face pressure from interest groups or lobbyists who have a stake in the domestic cotton industry, such as local cotton farmers or unions. Voting for tariffs against Egyptian cotton can be a way for legislators to gain support from these groups, which can be important for their political campaigns or reelection.

Revenue Generation

Tariffs, being a type of tax imposed on imported goods, can be a source of government revenue. By imposing a tariff on Egyptian cotton, legislators help their government generate more income that can be used for various public services and projects in their districts.

Geopolitical Reasons

Legislators might vote to impose a tariff on Egyptian cotton due to geopolitical factors, such as diplomatic disputes or disagreements between their country and Egypt. In such cases, imposing tariffs on imports from Egypt can be seen as a political move to signal their stance on a particular issue or to put pressure on the Egyptian government. In conclusion, although consumers in their districts could benefit from the availability of Egyptian cotton, legislators may choose to vote for a tariff on it for several reasons, including economic protectionism, preserving domestic jobs, gaining political support, increasing revenue, and geopolitical reasons.