Back in 1930, over a thousand economists signed a petition begging Congress not to pass the Smoot-Hawley Tariff Act. Congress didn't listen, and the oppressive tariffs ignited a worldwide trade war and helped twist a typical recession into the terrible Great Depression. In the nearly 70 years that followed, the fortunes of American citizens have become even more tied up with the performance of our international trading partners, making protectionist policies even more lethal from the point of view of economists. While serving on the White House Economic Policy Council, I learned how fine the balance is between good politics and good economics. U.S. congressmen can spend their entire careers consoling and consorting with victims of good economic policy.
Low inflation hurts borrowers.
Falling interest rates hurt elderly savers. Technological innovation hurts some workers. Taxes on pollution hurt some corporations. An economically illiterate public can be bullied or inveigled into thinking that the victims of good economics exactly offset the beneficiaries. Good economics is not a zero-sum game, taking from Vincent to pay Victoria.