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HOME > Short Stories > What Is Free Trade? > CHAPTER V. OUR PRODUCTIONS ARE OVERLOADED WITH INTERNAL TAXES——
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CHAPTER V. OUR PRODUCTIONS ARE OVERLOADED WITH INTERNAL TAXES——
 This is but a new wording of the Sophism before noticed. The demand made is, that the foreign article should be taxed, in order to neutralize the effects of the internal tax, which weighs down domestic produce. It is still then but the question of equalizing the facilities of production. We have but to say that the tax is an artificial obstacle, which has exactly the same effect as a natural obstacle, i.e. the increasing of the price. If this increase is so great that there is more loss in producing the article in question at home than in attracting it from foreign parts by the production of an equivalent value of something else—laissez faire. Individual interest will soon learn to choose the lesser of two evils. I might refer the reader to the preceding demonstration for an answer to this Sophism; but it is one which recurs so often, that it deserves a special discussion.

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