Can't you make the same argument for immigration and border closure? Capitalists will innovate regardless of policymaker intentions when faced with binding constraints. They don't need the constraint to be good policy they just need it to be real and costly enough.
Border closure will lead to black market labour (illegal immigration). If you follow the same line of argument it would mean that tarrifs lead to black market intermediary goods, rather than internal innovation.
Can't you make the same argument for immigration and border closure? Capitalists will innovate regardless of policymaker intentions when faced with binding constraints. They don't need the constraint to be good policy they just need it to be real and costly enough.
Border closure will lead to black market labour (illegal immigration). If you follow the same line of argument it would mean that tarrifs lead to black market intermediary goods, rather than internal innovation.