Economic nationalism facts for kids

Economic nationalism is an idea where a country wants to control its own economy. This means it wants to manage its jobs, how money is made and used, and what goods come into the country. Often, this includes adding special taxes on things imported from other countries.

Economic nationalism is sometimes seen as the opposite of globalization. Globalization is when countries become more connected through trade and culture. Economic nationalism often questions the idea of free trade, which is trade without many rules or taxes.

What is Economic Nationalism?

Economic nationalism is a belief that a country should put its own economic interests first. It focuses on making the country strong and independent in terms of money and jobs. This idea suggests that the government should play a big role in guiding the economy.

How Does It Work?

Countries that follow economic nationalism often use certain tools:

• Tariffs: These are special taxes added to goods that come from other countries. The goal is to make imported goods more expensive. This encourages people to buy products made inside their own country instead.
• Subsidies: A government might give money or help to businesses within its own country. This helps local companies grow and compete better against foreign companies.
• Controlling Key Industries: Sometimes, a country might want to own or strictly control important industries. These could be things like energy, steel, or farming. This ensures the country has control over vital resources.

Protecting Local Jobs

One main goal of economic nationalism is to protect jobs for people living in the country. When local businesses do well, they often hire more local workers. By making imported goods more expensive, the idea is that local factories and farms will sell more. This can help keep jobs from moving to other countries.

Building National Strength

Another reason for economic nationalism is to make a country stronger and more self-reliant. If a country can produce most of what it needs, it might depend less on other countries. This can be important for things like food, medicine, or defense.

Economic Nationalism vs. Free Trade

Economic nationalism is often compared to free trade.

• Free trade means countries can buy and sell goods and services across borders with very few rules or taxes. Supporters of free trade believe it leads to lower prices for consumers and more choices. They also think it helps all countries grow richer.
• Economic nationalism argues that completely free trade can sometimes hurt a country's own industries and jobs. It suggests that a country needs to protect its own businesses, especially new or struggling ones.

Different Views on Trade

People have different ideas about how much a country should control its trade.

• Some believe that open trade helps everyone by letting countries specialize in what they do best.
• Others worry that too much free trade can lead to job losses in some industries and make a country too dependent on others.

History of Economic Nationalism

The idea of economic nationalism is not new. It has been around for hundreds of years.

• In the 16th to 18th centuries, many European countries followed a policy called Mercantilism. This was a form of economic nationalism. Countries tried to export more than they imported and gather lots of gold and silver.
• In the 20th century, especially after big wars or economic problems, many countries used economic nationalism to rebuild their economies. They focused on making things themselves and protecting their industries.
• Today, you can still see elements of economic nationalism in many countries' policies. Governments often try to balance protecting local jobs with the benefits of international trade.

See also

In Spanish: Nacionalismo económico para niños