Buying Abroad is Beneficial

Dave Killion — April 2, 2012

Here’s a letter to The Victoria News –

In your article “Dealers mourn loss of cop bike contract” (30 March), a local motorcycle dealer bemoans what he perceives as the loss of $278,340 to our area.  But when we buy goods from other areas more cheaply than they could be purchased locally, we are richer, not poorer. As a result of this deal, Victoria residents will now have $278,340 worth of new motorcycles for our police department PLUS whatever other money it would have cost to acquire those machines from a Victoria dealer. There is no loss to the  area.

It is true that this benefit is dispersed amongst local taxpayers, and the cost is concentrated on local vendors, but this is the market’s method for communicating to entrepreneurs that our city may not be a good place to open or operate a motorcycle dealership, and that investors here should seek different opportunities.

There are tremendous benefits from being free to trade with those outside our area, and those who express protectionist sentiments would impoverish us for their own enrichment. Don’t listen to them.

Comments

BH says

“It is true that this benefit is dispersed amongst local taxpayers, and the cost is concentrated on local vendors”

This is the key line. Usually supporters of protectionism are those who benefit from it, and they never mention the cost to everybody else!

— April 2, 2012

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