Lessons from economies that closed their borders
3 days ago
- #economic-policy
- #authoritarianism
- #autarky
- Chet Booker's manufacturing business initially thrived due to tariffs on overseas competitors, but eventually collapsed due to political and economic shifts.
- Autarky, or economic self-sufficiency, often leads to short-term gains for favored businesses but long-term economic stagnation and dependency.
- Historical examples like Francoist Spain show how autarky causes economic collapse, inefficiency, and corruption, despite initial promises of prosperity.
- Authoritarian regimes use autarky to centralize control, making businesses dependent on political favor, which breeds corruption and stifles competition.
- Chet's story mirrors historical patterns where protected industries fail when political winds shift, leaving businesses vulnerable and unable to compete globally.