Historical protectionist laws in Europe show how protectionism, once hindering development, now resurfaces amid globalization challenges.
Historical Protectionist Laws
Economic laws in Europe from the 17th-19th centuries contained curious elements. For instance, an island law required burial in clean woolen fabrics produced in England, with imported alternatives not permitted.
Frederick the Great’s decree imposed high taxes on coffee to halt imports and promote domestic alternatives, primarily beer. However, this made coffee smuggling exceptionally profitable, leading to the hiring of 400 war veterans to sniff out coffee brewing in homes.
The Protectionist Philosophy
These laws represented an expression of protectionism – the belief that what is ours and locally produced is good and serves us, while what is foreign drains our wealth.
This philosophy hindered development for centuries, which later led to unprecedented prosperity through international trade.
