Brain Fertilizer

The following is from the Wikipedia entry on Frederic Bastiat. It is a good explanation of why I don't like the protectionist policies/urges of the Democratic Party:

Bastiat's Negative Railroad A famous section of Economic Sophisms concerns the way that tariffs are inherently counterproductive. Bastiat posits a theoretical railway between Spain and France that is built in order to reduce the costs of trade between the two countries. This is achieved, of course, by making goods move to and from the two nations faster and more easily. Bastiat demonstrates that this situation benefits both countries' consumers because it reduces the cost of shipping goods, and therefore reduces the price at market for those goods.

However, each country's producers begin to rail at their governments because the other country's producers can now provide certain goods to the domestic market at reduced price. Domestic producers of these goods are afraid of being out-competed by the newly viable industry from the other country. So, these domestic producers demand that tariffs be enacted to artificially raise the cost of the foreign goods back to their pre-railroad levels, so that they can continue to compete.

Bastiat raises two significant points here:

Even if the producers in a society are benefitted by these tariffs (which, Bastiat claims, they are not), the consumers in that society are clearly hurt by the tariffs, as they are now unable to secure the goods they want at the low price they should be able to secure them at.
The tariffs completely negate any gains made by the railroad and therefore make it essentially pointless.
To further demonstrate his points, Bastiat suggests that, rather than enacting tariffs, the government should simply destroy the railroad anywhere that foreign goods can outcompete local goods. Since this would be just about everywhere, he goes on to suggest that that government should simply build a broken or "negative" railroad right from the start, and not waste time with tariffs and rail building. This is an example of Bastiat's consummate skill with the reductio ad absurdum rhetorical technique. Indeed, we can take Bastiat's argument even farther and see that, by examining everything from the perspective of the producer, society would be "best" if we were regressed to a cave-man state where supply of goods was at maximum scarcity. Then people would have to work as hard as possible for as little as possible and never have to fear outside competition.

In short, the thrust of Bastiat's negative railroad hinges on two major points:

All economic decisions should be made with the consumer in mind. (This is central to Bastiat's ideas)
Tariffs serve no purpose but to negate the gains provided to society by technology, labor, ingenuity, determination and progress.
An important corollary to these conclusions is that the power that consumers wield with any governing body, while theoretically tremendous, is extremely diffuse. Producers, on the other hand, while not as powerful on the whole as the sum total of consumers, have the ability to consolidate their power in ways that make it much more attractive for governing bodies to service their needs. Thus, while consumers could theoretically shut down an entire industry (or government) by refusing to buy/sell/do something, the likelihood of the great mass of people organizing in this way for any reason whatever is so infinitesimal as to be practically impossible. Producers, on the other hand, are able to threaten or cajole the government with shutting down a single industry, with reductions in political and financial contributions to the government agents who make certain decisions, &c. It is for this reason that governments are much more likely to pander to the desires of producers than to consumers, and it is for this reason, Bastiat concludes, that governments are inherently adversarial to the interests of the people as a whole. Indeed, they are even adversarial, in some way, to the interests of the producers themselves, as the producers of one good or service are still consumers of all the other goods and services.