Arguments for and against protectionism of steel industry in the USA.

Protectionism is an economic policy of restraining trade among countries, using methods such as tariffs on imported goods, quotas. Government through using protectionism, try to discourage imports.

Protectionism protect businesses and workers within a country by restricting or regulating trade with foreign countries. According to article about steel industry in the United States, because of high amount of steel imports, many companies bankrupted, more than 50,000 jobs destroyed, so many negative consequences happened, that's why the president of USA, decided to make tariffs on imports of steel products, he wanted to make protectionism system in the United States. The main problem is that people are becoming unemployed and companies lose their workers, so if American government make protectionism system in their country, they can improve quality of their steel market and they will spend less on imports, what is good for their economic system as a whole and it will improve their national production, but on the other hand protectionism can lead to monopoly, therefore it will reduce competition among firms and companies. Also, if USA government reduce the amount of imports, it can help to the current account, probably for United States it is much better to improve their steel industry rather than import steel from other countries, because USA is a country of massive abilities and they can make their own steel industry on a high level, and there is a huge amount of products which made from steel, for example cars, if USA develop their steel industry, it will be cheaper for consumers to buy American cars, because steel made from their own country. Possibly through supply side policy, by training and giving practice to steel manufacture workers, it will also help for country, and in this case protectionism is useful. The main problem of protectionism system is monopoly which can happen, if protectionism will be in USA, because the one steel company can be above all other companies and it will not be competition among countries, therefore it will be a monopoly in USA. Anyway, advantages for protectionism of steel industry in the USA more than disadvantages, through protectionism people will have their jobs and government will not lose a big amount of money on imports of steel from countries of steel industry such as India.