What is Protectionism and Why does Gordon Brown Fear it?

" protectionism" - The practice of protecting domestic goods and service industries from foreign competition with tariff and non-tariff barriers.

Gordon Brown has started trying to rally the population, but mentioned protection may be an issue.

Protectionism causes higher prices for consumers because domestic producers are not exposed to foreign competition, and can therefore keep prices high. There is also the possibilty domestic exporters may also may suffer, because foreign countries tend to retaliate against protectionism with tariffs and barriers of their own.

Many economists say that the Depression of the 1930s was precipitated by the protectionist trade barriers erected by the United States.

This is why the summit taking place in April hosted by Gordon Brown will be instrumental to moving the G8 economies forward.

Before the summit Mr. Brown calls for positivity from the British public, indeed many of the predictions of doom and gloom from analysts become self fulfilling.

Improved consumer sentiment is a piece in the jigsaw of economic recovery.