Protectionism raises prices but adds employment

To the editor:

This past weekend more than 250,000 motorcycle riders assembled in Milwaukee to celebrate the 100th anniversary of Harley-Davidson Inc., a proud American industrial organization with one of the strongest brands in the world.

It is important to remember, however, a pivotal event that contributed to the company's success. In 1983, President Reagan signed legislation imposing a 45 percent tariff on all imported motorcycles with engines over 700 cc. The purpose of this legislation was to protect Harley-Davidson against its Japanese competitors. At the end of 1980, Harley employment stood at 4,000. By 1982, it was down to 2,200. These tariffs have since expired, but they allowed Harley to gain a competitive advantage over the Japanese. Today, Harley employment stands at more than 8,000.

Protectionist legislation causes higher prices for goods. But the employment it creates enables people working at good jobs to afford the higher prices. People cannot afford even low-priced goods when they are not working. Important politicians should, like Reagan, figure that out sooner than later.

ELI FISHMAN

Cape Shoe Co.

Cape Girardeau