A "beggar-my-neighbor" policy describes an economic strategy where a country attempts to solve its own domestic problems by using methods that worsen the economic situation of other countries .
The phrase was likely coined by writer O. Henry in 1904, though it is based on an older card game of the same name . beggar-my-neighbor policy
Provides immediate protection for struggling domestic industries . Can temporarily boost employment in specific sectors . Major Drawbacks (Long-term) Placing strict limits on the
Increases the competitiveness of exports through currency tactics . Major Drawbacks (Long-term) beggar-my-neighbor policy
Placing strict limits on the volume of specific goods that can be imported.
Providing government funds to domestic firms so they can undercut international competitors. Historical Context
💡 While tempting for politicians looking for a "quick fix" to domestic unemployment or industrial decline, beggar-my-neighbor policies are almost universally viewed by economists as mutually destructive in the long run. They provoke retaliation and shrink the "total pie" of global wealth . The WTO: Theory and Practice