1,200 jobs in the domestic tire sector, but it cost 3,700 jobs in other sectors, as consumers had to reduce their

spending because they were paying more for tires. People actually lost their jobs as a result of this tariff. Workers in

U.S. tire manufacturing firms earned about $40,000 in 2010. Given the number of jobs saved and the total cost to

U.S. consumers, the cost of saving one job amounted to $926,500!

This tariff caused a net decline in U.S. social surplus. (We discuss total surplus in the Demand and Supply chapter,

and tariffs in the Introduction to International Trade chapter.) Instead of saving jobs, it cost jobs, and those jobs that

it saved cost many times more than the people working in them could ever hope to earn. Why would the government

do this?

The chapter answers this question by discussing the influence special interest groups have on economic policy. The
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