Protectionism and the Theory of Collective Action: Better-Organized and Better-Financed Interests Win in the Political Process

Now comes the puzzle: If free trade is so beneficial, why has protectionist sentiment remained alive and well in government circles and in most historical periods? Why is it so difficult to reduce barriers to international trade?

The answer is that, in political reality, protectionism does not aim to maximize income or welfare but to protect the special interests of certain producers. Even if free trade benefits consumers across the board, it hurts some producers’ interests. Protectionism has the opposite effect—it hurts most people but benefits special interests among producers. Why do special interests win against the interests of most people, and why are policies enacted if they have higher costs than benefits? These phenomena are explained by what economists call the theory of collective action: small, concentrated interests have greater ability and incentives to organize for lobbying and other political action than large, diffuse interests do. In general, the better-organized and better-financed interests win in the political process.

--Pierre Lemieux, What's Wrong with Protectionism? Answering Common Objections to Free Trade (Lanham, MD: Rowman and Littlefield, 2018), Kindle e-book.