Infant industry argument

Hey kiddo, do you know what an "infant industry" is? No? Okay, let me explain it to you in simple terms.

An "infant industry" is a new industry that is just starting to grow up. Think about how you're growing up and learning new things every day. Well, an industry is a group of companies that make similar things, like toys or clothes. When a new industry is just starting out, it might need some help to get going.

That's where the "infant industry argument" comes in. Some people think that new industries need protection from competition in order to grow strong. Just like how you need adult help to grow strong and learn new things.

Here's an example: let's say a company in a developing country wants to start making cars. But there are already big car companies from other countries that are established and have been making cars for a long time. These big companies can make cars much more efficiently and cheaply than the new company.

So, some people might argue that the new company needs protection, like special taxes or tariffs, to make its cars cheaper and more competitive. This is called protectionism. The idea is that once the new company has grown up and become more efficient, it won't need protection anymore.

But not everyone agrees with this argument. Some people think that protecting a new industry can hurt consumers by making them pay more for goods. And some worry that protecting any industry, even an infant one, can lead to unfair competition practices and damage the overall global economy.

So, the basic idea of the "infant industry argument" is that new industries might need help to grow strong, but some people worry about the long-term consequences of protectionism.