Both capital and labor resources would be drawn into banana production. This means other segments of the economy would face slightly higher costs for these two factors of production. This shift would be compounded by the fact that consumers would now be spending less money on all other products. In the end, some banana farmers might reap a windfall profit, but that additional income would be more than offset by falling income and lower wealth in the rest of the economy. At best, however, this is a meaningless comparison.
Free trade is good for America, both in theory and practice.
Mr. Mitchell is the McKenna Senior Fellow in Political Economy at the Heritage Foundation .