Trade protectionism may be sparking more than just price hikes – it’s creating a breeding ground for corruption, according to economist Steve Hanke. In a sharp critique, Hanke argues that U.S. tariffs have become a “catalyst” for backroom dealings as businesses increasingly rely on lobbyists to secure exemptions.
Data shows lobbying spending surged by 18% year-over-year in sectors directly impacted by recent tariffs, per transparency reports. “Tariffs empower politicians to pick winners and losers,” Hanke explains. “When exemptions become currency, corruption becomes inevitable.”
The trend raises questions about economic fairness as small businesses—which often lack lobbying budgets—bear the brunt of trade barriers. Tech startups and sustainable energy firms in G20 nations report delayed projects due to component shortages linked to tariff disputes.
Young entrepreneurs globally are taking note: 76% view protectionism as detrimental to innovation in a recent Gen-Z Business Council survey. As trade policies dominate election debates worldwide, Hanke warns: “We’re monetizing policy decisions instead of solving economic problems.”
Reference(s):
cgtn.com
