How does protectionism impact global economic inequality?

Protectionism can impact global economic inequality in several ways. Firstly, by imposing trade barriers such as tariffs and quotas, protectionism can limit the access of developing countries to global markets. This can hinder their ability to export goods and services, reducing their potential for economic growth and exacerbating global economic inequality.

Secondly, protectionism can lead to retaliation from other countries, resulting in trade wars and reduced global trade. This can disrupt supply chains, increase costs for businesses, and ultimately lead to economic downturns. Such downturns tend to disproportionately affect lower-income individuals and countries, further widening the gap between the rich and the poor.

Additionally, protectionism can also lead to the concentration of economic benefits within a few industries or companies. By shielding domestic industries from foreign competition, protectionist policies can create monopolies or oligopolies, allowing these industries to charge higher prices and accumulate more profits. This concentration of wealth can contribute to increased inequality within countries and globally.

Overall, protectionism can hinder economic development, disrupt global trade, and concentrate wealth, all of which can contribute to increased global economic inequality.