Consumer Surplus Background: There has been a lot of talk about
trade restrictions, in the hopes that such policies will encourage
production and hence job growth in this country. Economists,
generally, are skeptical of policies that reduce or restrict
international trade. A historical example can help illustrate some,
although not all, of that economic skepticism. In 1980, the United
States negotiated a Voluntary Export Restraint Agreement (VER) with
Japan. The VER limited Japanese automobile exports to the United
States. This...