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American Focus > Blog > Economy > “Here, We Sell Local”: Collectivist or Tribal Protectionism
Economy

“Here, We Sell Local”: Collectivist or Tribal Protectionism

Last updated: October 1, 2024 6:26 am
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“Here, We Sell Local”: Collectivist or Tribal Protectionism
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Nationalism as a Form of Modern Tribalism

Nationalism is often viewed as a form of collectivism or modern tribalism, where a sense of unity and identity is derived from one’s nation or ethnic group. This sentiment is often manifested in a dislike or distrust of foreigners, leading to calls for protectionist measures in various sectors of the economy.

One such example is the disdain for foreign producers who are able to offer goods at lower costs, making it difficult for domestic producers to compete. This has led to calls for restrictions on imports, with some viewing foreign producers as a threat to the local economy. Similarly, there is a growing trend of protectionism in the tourism industry, where incoming tourists are seen as intruders who disrupt the local environment and resources.

A recent article in the Financial Times highlighted Greece’s crackdown on excessive tourism, with measures being taken to regulate short-term rentals and curb cruise ship traffic. This move has been driven by pressure from hotel owners, who see tourism as a threat to their business. The sentiment of “us versus them” is evident in these actions, as locals seek to protect their interests at the expense of foreign visitors.

However, this protectionist mindset overlooks the benefits that tourism brings to the economy, as tourists contribute to the local economy by spending on accommodations, food, and other services. While there may be costs associated with hosting tourists, these are often offset by the revenue generated from tourism activities.

In a free-market society, higher demand for goods and services naturally leads to higher prices and rationing of scarce resources. Discriminatory measures, such as restrictions on imports or tourism, only serve to distort the market and limit consumer choice. Friedrich Hayek argued that collectivism is a remnant of tribalism, where special interests capture government and prioritize their own interests over the common good.

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Ultimately, the rise of nationalism and protectionism threatens to undermine the principles of free trade and open markets, which have been instrumental in promoting economic growth and prosperity. By embracing diversity and welcoming foreign visitors, societies can benefit from the exchange of ideas, culture, and commerce. It is important to recognize the value of globalization and interconnectedness in today’s world, rather than succumbing to the narrow-mindedness of nationalism.

TAGGED:CollectivistLocalProtectionismselltribal
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