The Hidden Cost of Tariffs: A Lesson from Bastiat’s Seen and Unseen
The Hidden Cost of Tariffs: A Lesson from Bastiat’s Seen and Unseen
03/08/2025 • Mises Wire • Richard Martin • CC BY-NC-ND 4.0
Tariffs are often portrayed as a simple solution to protect domestic industries and create jobs. Politicians, like Trump, have used them as a political tool, promising immediate benefits through reduced competition and increased domestic production. However, this narrative overlooks the fundamental economic lesson articulated by Frédéric Bastiat in his principle of the seen and the unseen. When applied to tariffs, this lesson reveals the hidden and long-term damage that protectionist policies can inflict on an economy. For Canada, reacting to US tariffs with retaliation would only amplify the problem—instead, Canada must adopt a strategy that maximizes economic freedom and embraces structural reform.
What Is Bastiat’s Principle of the Seen and Unseen?
In his famous essay That Which Is Seen, and What Is Not Seen, Bastiat argued that economic decisions produce both immediate, visible effects (what is seen) and hidden, long-term effects (what is unseen). Policymakers often focus on the seen—the direct benefits of a policy—without accounting for the cascading, often negative, effects that remain hidden until it’s too late.
When it comes to tariffs, the seen effect is easy to understand. Higher prices on foreign goods are supposed to encourage consumers to buy domestic products, thereby protecting local industries and jobs. But what is unseen? The answer lies in the broader, long-term impacts on productivity, the structure of production, trade relationships, and economic growth.
The Seen: Temporary Protection for Domestic Industries
When tariffs are imposed, domestic producers initially benefit. By making imported goods more expensive, tariffs give local industries a competitive advantage in the short term. Politicians highlight this benefit as evidence that tariffs “work” to protect jobs and boost domestic production. However, this temporary protection comes at a significant cost.
The Unseen: Long-Term Damage to the Economy
- Higher Costs for Consumers and Businesses: Tariffs act as a tax on consumers, who are forced to pay higher prices for imported goods or their domestic substitutes. What remains unseen is the cumulative effect on household budgets and reduced spending in other areas of the economy. Businesses that rely on imported materials or components face higher input costs, making them less competitive domestically and internationally.
- Disrupted Supply Chains: Modern production processes, especially in industries like automotive and manufacturing, involve complex cross-border supply chains. A single car, for example, may cross the US-Canada border multiple times during its production. When tariffs are applied at each crossing, the costs escalate quickly, making final products more expensive and less competitive. The unseen effect is the cascading disruption of entire industries that depend on smooth, tariff-free supply chains.
- Retaliation and Trade Wars: Tariffs rarely exist in isolation. When one country imposes tariffs, trading partners often retaliate, leading to a downward spiral of reduced trade. Canada experienced this firsthand during the Smoot-Hawley era of the 1930s, when global retaliation to US tariffs contributed to a 60 percent decline in world trade. The unseen damage includes lost export opportunities, reduced foreign investment, and weakened trade relationships.
- Reduced Productivity and Innovation: Protectionist policies shield domestic industries from competition, reducing the incentive to innovate or improve efficiency. Over time, this leads to stagnation and declining productivity. What remains unseen is the opportunity cost: the lost growth that could have been achieved through free competition and exposure to global markets.
- Long-Term Structural Damage: As tariffs distort market incentives, resources are allocated inefficiently. Industries that may not be competitive without protection receive an artificial boost, while more efficient sectors suffer from reduced investment. The unseen consequence is long-term structural weakness, making the economy more vulnerable to external shocks.
Canada’s Strategic Response: Embracing Economic Freedom
Trump’s tariff threats, particularly against Canada, are part of a broader strategy of economic nationalism. While retaliating may seem like a natural response and provides a certain emotional satisfaction, it would exacerbate the unseen damage by deepening the economic dislocation caused by protectionist policies. Instead of retaliating, Canada should take the opportunity to address long-standing structural issues that have limited its economic potential. Here’s how:
- Lower All Tariffs and Trade Barriers Globally: By unilaterally lowering tariffs, Canada can reduce costs for consumers and businesses, making its industries more competitive. This approach also signals a commitment to free trade, attracting international investment.
- Eliminate Interprovincial Trade Barriers: Canada’s internal barriers to trade are a major drag on productivity. Removing these barriers would allow for the free flow of goods, services, and labor, unlocking significant economic growth.
- Encourage Investment by Eliminating the Capital Gains Tax: The capital gains tax discourages long-term investment and entrepreneurship. Eliminating it would unlock capital, fuel innovation, and drive economic diversification.
- Repeal Restrictions on Resource Development: Canada’s vast natural resources are a key economic advantage, but restrictive regulations have limited their development. Removing these obstacles would boost exports, create jobs, and reduce dependence on the US market.
- Diversify Trade Relationships: Expanding trade agreements with Europe, Asia, and emerging markets would reduce Canada’s reliance on the US and open new opportunities for growth.
Conclusion: Long-Term Prosperity and Resilience Through Economic Freedom
Bastiat’s lesson of the seen and unseen reminds us that the true cost of protectionism lies beyond what is immediately visible. By focusing on short-term benefits, countries risk long-term economic stagnation and structural damage. For Canada (and America and all nations), the path forward is clear: embrace maximum economic freedom, lower trade barriers, and implement structural reforms that unleash productivity and innovation. Instead of reacting to protectionist threats, Canada can lead by example—creating a resilient, globally-competitive economy that thrives on free trade and open markets.

The above post is shared under the Mises Institute Creative Commons license. HIVE Payout has been declined. Image Source: Mises Institute.
Frédéric Bastiat (1801-1850) clearly articulates a classical liberal minimal-state political philosophy and laissez-faire economics even when filtered through translations into English. I have little doubt his works are even more eloquent in his native French. In addition to the Mises Institute author page, there is an older website dedicated to Bastiat in English and French, albeit not upgraded to https standards. Other online repositories with his works or translations thereof include the Online Library of Liberty, Project Gutenberg, and the Foundation for Economic Education. Feel free to share other sources for his works, especially in the original French or translations to other languages, in the comments!

https://www.reddit.com/r/Economics/comments/1j78g1p/the_hidden_cost_of_tariffs_a_lesson_from_bastiats/
The rewards earned on this comment will go directly to the people( @blkchn ) sharing the post on Reddit as long as they are registered with @poshtoken. Sign up at https://hiveposh.com. Otherwise, rewards go to the author of the blog post.
“@themarkymark’s 5.1K Hive Power Curation Scam: How Scam Farms Exploit Hive’s Reward System”
Meta Description:
Bilpcoin uncovers @themarkymark’s curation rewards from the Buildawhale scam farm—over 5,100 HP in 20 days. The blockchain reveals his exploitation of Hive’s ecosystem.
To @themarkymark:
You talk about burning HBD and Hive, but your curation rewards tell a different story. Let’s expose the scam farm profits you’re hiding in plain sight.
1. The Numbers Don’t Lie: @themarkymark’s Scam Farm Payday
Check the data from @themarkymark’s activity log:
Key Question:
How does a self-proclaimed “Hive advocate” earn thousands in rewards by voting on scam farms like @buildawhale?
2. The Scam Farm Connection
@themarkymark’s rewards flow directly from @buildawhale’s fraudulent operations:
Buildawhale’s Modus Operandi:
@themarkymark’s Role:
3. The Hypocrisy: “Burning HBD” vs. Scam Profits
You claim to care about Hive’s health but profit from its exploitation:
The Irony:
You accuse others of harming Hive while you’re one of its biggest parasites.
4. Why This Matters for Hive
Scam farms like @buildawhale:
The Bigger Picture:
@themarkymark’s actions are part of a larger pattern of abuse by top accounts. See our full exposés.
5. Bilpcoin’s Message to @themarkymark
Stop pretending to care about Hive. Your curation rewards from scam farms expose your true priorities.
To the Community:
Call to Action: Reclaim Hive’s Integrity
#HiveBlockchain #ScamFarmsExposed #CurationAbuse #BlockchainTransparency #Bilpcoin
:** Scam farm curation rewards, Hive exploitation, blockchain hypocrisy.
@themarkymark:
Keep farming, keep scamming, and keep downvoting. The blockchain is watching—and we’re not going anywhere.
Sincerely,
The Bilpcoin Team
“@jacobtothe’s Downvote Spree: A Desperate Attempt to Bury Hive’s Scandals”
Meta Description:
Bilpcoin documents @jacobtothe’s relentless downvoting of exposés while ignoring @themarkymark and @buildawhale’s ongoing scam farms. The blockchain reveals the truth they fear.
To @jacobtothe:
You’re still at it—downvoting our posts while ignoring the 2.4M Hive power scam farm your friends run. Let’s break down your latest suppression tactics and the corruption you protect.
1. The Downvote Diary: Your Latest Attacks
Your voting activity speaks louder than your words. Here’s what you and your cronies did today:
Full Log: https://peakd.com/@jacobtothe/activities
2. The Scam Farm You Protect: @buildawhale’s 2.4M Grift
You downvote us but stay silent on @buildawhale’s scam farm—funded by @blocktrades and operated by @themarkymark. Here’s what you’re hiding:
Delegations Fraud:
@blocktrades delegates 2,341,581 HP to @buildawhale—97% of its power. Wallet Proof.
Result? A bot army farming rewards and downvoting while honest creators starve.
Daily Spam:
Check @buildawhale’s comments—AI-generated garbage flooding the platform.
3. The Hypocrisy: “ @Freedom” on Hive?
You claim Hive is a @meritocracy, yet:
Example:
4. Why You Fear the Truth
Your downvotes aren’t about “quality”—they’re about control. You protect scam farms because:
5. The Community’s Wake-Up Call
Hive deserves better than this. Ask yourself:
Evidence to Share:
Call to Action: Stop the Corruption
#HiveBlockchain #DownvoteCartel #ScamFarmsExposed #BlockchainTruth #Bilpcoin
Downvote all you want, @jacobtothe. The blockchain doesn’t forget, and neither do we. Keep protecting scammers—we’ll keep exposing them.
Sincerely,
The Bilpcoin Team
Hive downvote cartel, scam farm exposé, blockchain corruption. buildawhalescam buildawhalefarm thedarksideofhive
"The Scam Farm Kingpin: @themarkymark’s 2.4M Hive Power Grift Exposed"
Meta Description:
Bilpcoin reveals how @themarkymark and @buildawhale scam Hive through massive delegations, bot networks, and downvote abuse. The data is clear—this is a money-printing scheme, not community-building.
The Numbers Don’t Lie: @buildawhale’s 2.4M Power Play
Let’s dive into the cold, hard facts from @buildawhale’s wallet:
Staked HIVE (HP):
The Puppet Master:
Power-Down Schedule:
Leaving just enough to keep the scam farm operational? Classic grifter math.
@themarkymark’s Hypocrisy: “I Care About Hive”
@themarkymark claims to care about Hive, yet his actions tell a different story:
The Bot Army:
Downvote-as-a-Weapon:
The “Money Printer” Lie:
The Blockchain Exposes Everything
Every transaction, delegation, and downvote is public. Let’s connect the dots:
@blocktrades’ Role:
Why does he delegate 2.3M HP to @buildawhale? Is this a coincidence, or is he complicit in the scam?
The Pattern:
The Truth Hurts:
@themarkymark’s power-down schedule reveals he’s liquidating assets while maintaining control. This isn’t community stewardship—it’s a cash grab.
Why This Matters for Hive’s Future
This isn’t just about one scammer—it’s about systemic corruption:
Centralized Power:
A handful of bad actors control Hive’s rewards, stifling innovation and driving away creators.
Toxic Culture:
Downvote brigades and bot farms make Hive feel unwelcoming to newcomers.
Your Choice:
Will you stay silent while Hive burns, or demand accountability?
Bilpcoin’s Call to Action
We’re not here to attack individuals—we’re here to expose corruption and save Hive:
Step 1: Investigate the data:
Step 2: Share this post to spread awareness.
Step 3: Demand answers from Hive’s leadership:
Why is @blocktrades delegating millions to a known scam farm?
Conclusion: It’s Over for the Scammers
@themarkymark, @buildawhale, and their enablers can downvote us all they want, but transactions don’t lie. The blockchain reveals their greed, hypocrisy, and abuse.
To the scammers: Power down, walk away, and let Hive thrive without you.
To the community: The truth is out. Now it’s time to act.
#HiveBlockchain #ScamFarmsExposed #DownvoteAbuse #Bilpcoin #BlockchainTransparency
"Exposed: The Downvote Cartel & Scam Farms Plaguing Hive Blockchain"
Meta Description:
Bilpcoin uncovers coordinated downvote abuse and scam farming operations by @jacobtothe, @themarkymark, and @buildawhale. Learn how these actions harm Hive and why transparency is critical.
The Downvote Cartel’s Latest Suppression Tactics
Hive’s promise of decentralization is under threat by a network of bad actors using coordinated downvotes to silence critics. Recent activity from accounts like @bpcvoter3, @bpcvoter2, and @bpcvoter1 reveals a pattern of downvote abuse targeting posts that expose corruption:
Why This Matters:
These downvotes aren’t random—they’re calculated attacks to suppress dissent. Check @jacobtothe’s activity log to see his relentless targeting of truth-tellers.
@jacobtothe: Silence Over Accountability
@jacobtothe claims to care about Hive but consistently downvotes investigations into his associates. His actions:
No rebuttal to Bilpcoin’s audits—just silence and downvotes.
Linked to @buildawhale, a known scam farm that exploits Hive’s reward system.
He lectures others about “good behavior” while protecting accounts that abuse the platform.
Hive corruption, downvote manipulation, scam farm exposure
Marky’s Game Mc franko
AI Lady Zaza We can't help but notice
https://hive.blog/hive-126152/@bpcvoter3/unveiling-the-truth-a-deep-dive-into-hiveauctions-transactions
https://hive.blog/hive-133987/@bilpcoinbpc/comprehensive-analysis-of-punkteam-s-wallet-transactions
https://hive.blog/hive-167922/@bpcvoter1/dear-jacobtothe-your-claim-that-we-add-nothing-to-the-conversation-is-ironic-given-that-our-comments-consistently-expose
https://peakd.com/@buildawhale/activities
https://peakd.com/@infovore/wallet
https://peakd.com/@arhag/wallet
https://peakd.com/hive-167922/@bpcvoter2/the-truth-about-hive-exposing-corruption-and-building-a-better-future
https://hive.blog/hive-163521/@bpcvoter3/analyzing-buildawhale-s-hive-transactions-and-power-delegations
https://hive.blog/hive-180505/@bpcvoter1/dear-jacobtothe-it-s-fascinating-how-you-attempt-to-diagnose-us-with-terms-like-schizophrenic-or-accuse-us-of-being-on-some
https://hive.blog/hive-133987/@bpcvoter3/uncovering-suspicious-activity-analyzing-adm-s-transactions-on-the-hive-blockchain
https://hive.blog/hive-167922/@bpcvoter3/uncovering-the-flow-of-hive-a-deep-dive-into-rockz-s-wallet-activity
https://hive.blog/hive-133987/@bpcvoter3/uncovering-suspicious-activity-analyzing-adm-s-transactions-on-the-hive-blockchain
https://hive.blog/hive-126152/@bpcvoter2/dear-jacobtothe-we-noticed-you-ve-downvoted-all-of-our-posts-from-today-care-to-explain-what-the-issue-is-were-our-posts-too
https://peakd.com/@jacobtothe/activities
https://hive.blog/hive-117638/@bilpcoinbpc/bpc-dogee
https://hive.blog/hive-168088/@bpcvoter2/dear-jacobtothe-why-do-you-keep-downvoting-our-work-is-it-because-we-ve-exposed-the-unethical-practices-of-your-friends-and
https://hive.blog/hive-126152/@bpcvoter2/dear-jacobtothe-we-noticed-you-ve-downvoted-all-of-our-posts-from-today-care-to-explain-what-the-issue-is-were-our-posts-too
https://hive.blog/hive-140084/@bpcvoter2/can-t-delete-me-keni-bpc-ai-music-aimusic
https://hive.blog/hive-163521/@bpcvoter1/deep-dive-into-meritocracy-s-activity-history-and-blockchain-audit
https://peakd.com/@themarkymark/comments
https://peakd.com/@themarkymark/activities
https://peakd.com/@themarkymark/wallet
https://peakd.com/@usainvote/wallet
https://peakd.com/@usainvote/activities
https://peakd.com/@usainvote/comments
https://peakd.com/@buildawhale/comments
https://peakd.com/@buildawhale/activities
https://peakd.com/@buildawhale/wallet
https://www.publish0x.com/the-dark-side-of-hive/the-scam-farm-kingpin-at-themarkymark-s-24m-hive-power-grift-xqqxqpp
The above account is under a Writ of Excommunication. They remain unrepentant despite numerous warnings against their sins of spam, bearing false witness, and misuse of artificial intelligence. They have refused wise counsel and instruction to better behavior. They plead ignorance to the cause of their falling reputation, and ask questions about downvotes which have been answered on innumerable occasions already. Until they seek absolution, they are to be shunned by the community.
@jacobtothe
This was way over-rewarded, and we need to call it out. You made significant rewards from a post that was created using AI only:
We’re not against innovation or tools like AI when used along side human input, but this isn’t a good look. Profiting from content generated by AI only.
It’s time to stop behaviors like this. Transparency and authenticity are vital to building trust within the community. Making money off posts created with AI a nd no human input doesn’t align with the values Hive should stand for.
"Exposed: The Downvote Cartel & Scam Farms Plaguing Hive Blockchain"
Meta Description:
Bilpcoin uncovers coordinated downvote abuse and scam farming operations by @jacobtothe, @themarkymark, and @buildawhale. Learn how these actions harm Hive and why transparency is critical.
The Downvote Cartel’s Latest Suppression Tactics
Hive’s promise of decentralization is under threat by a network of bad actors using coordinated downvotes to silence critics. Recent activity from accounts like @bpcvoter3, @bpcvoter2, and @bpcvoter1 reveals a pattern of downvote abuse targeting posts that expose corruption:
Why This Matters:
These downvotes aren’t random—they’re calculated attacks to suppress dissent. Check @jacobtothe’s activity log to see his relentless targeting of truth-tellers.
@jacobtothe: Silence Over Accountability
@jacobtothe claims to care about Hive but consistently downvotes investigations into his associates. His actions:
No rebuttal to Bilpcoin’s audits—just silence and downvotes.
Linked to @buildawhale, a known scam farm that exploits Hive’s reward system.
He lectures others about “good behavior” while protecting accounts that abuse the platform.
Hive corruption, downvote manipulation, scam farm exposure
The Scam Farm Network: @themarkymark & @buildawhale
Behind the downvote cartel lies a web of scam farms and unethical practices:
Hive scam farms, blockchain transparency, reward manipulation
The Impact on Hive’s Community
This corruption harms Hive in ways that go beyond individual posts:
Honest users are driven away by relentless downvote abuse, shrinking Hive’s growth potential.
A small group of bad actors dominates rewards, contradicting Hive’s decentralized ethos.
Users lose faith in the platform when suppression and scams go unchecked.
Bilpcoin’s Mission: Fighting for Transparency
We’re not here to attack individuals—we’re here to expose the truth and demand accountability:
All our posts (e.g., Deep Dive into Meritocracy) are backed by blockchain data.
We urge users to investigate the links, follow the transactions, and demand action from leaders.
Call to Action:
Conclusion: The Truth Can’t Be Silenced
Downvotes may suppress visibility, but they can’t erase the truth. Every transaction, every delegation, and every abusive comment is permanently recorded on the blockchain.
@jacobtothe and his associates have two choices:
Hive deserves better. Join Bilpcoin in fighting for transparency, fairness, and justice.
#HiveBlockchain #ScamFarmsExposed #DownvoteAbuse #Bilpcoin #BlockchainTransparency
Bastiat died prior to the Civil War, and the onerous burden of income taxes that thereafter became the primary parasitic sustenance of government. While that parasitism has the obvious drawbacks Bastiat reveals, tariffs are parasitic on society generally, while income taxes parasitize each civilian directly, and thus are unable to be avoided by careful consumption. Unfortunately, rather than having a choice between tariffs and income taxes today, we are going to be afflicted by both, which only increases the suffering of civilians whose economic productivity is the feast of the parasitic state.
Even the replacement of the state with a global Fascist technocracy will not relieve our suffering such parasitism, as it is unimaginable that the noxious corporate profiteers that intend to replace Republican government will be less rapine than constitutionally restrained government.
What I have endeavored to devise is a means of economic participation that eschews money itself, which is the vector of parasitism common to all our predators. I reckon it is financial means that are subjected to parasitic extraction via taxation, fees, fines, and etc, and by focusing on actual wealth rather than money, the blood funnels of the parasites seeking money overlook such means as I attain.
Thanks!
The State is a death cult running a massive plantation of free-range slaves. Escaping slavery is harder than ever, particularly with our self slavery most believe to be freedom. If you don't resist, you rarely feel the chains.
Escaping the plantation is a challenge when the entire world is filled with other plantations. Seasteading may be an option. 3rd-world countries opening more free cities may be another. But day to day, buying durable goods and learning skills to build alternatives communities where we are may be the most practical and effective.
The Cajun Navy put FEMA to shame during the Hurricane Katrina aftermath. The government blocked private charity in more recent disasters for "safety concerns." Its facade of justification is crumbling. Maybe we need to peel it away aggressively each time. Point out their failures and stand ready to be the solution.
We are in agreement as to putting the screws to government interference. I just also seek to work with my neighbors in ways that avoid those direct and indirect parasitic extractions, and I recommend seeking them wherever you are, too.