I was shocked to hear Dr Mahathir's comment that the government may have to return to tax barriers to protect the economy, which finally confirms what has been said about him - a lucky maverick who lacked deep understanding of economics.

After the experience of Europe and Latin America and his own experience in liberalising trade and investments, it is unbelievable that he now espouses tax barriers.

Protectionism is bad policy - and tax barriers particularly bad - because not only does it lead to uncompetitive industries, it eventually leads to long-term structural unemployment that is very difficult to solve.

Tax barriers essentially sent the wrong message to both investors and workers. Companies that grow under tax barriers are never competitive. Workers that work for such industries ultimately becomes unemployed, and the company becomes uncompetitive and find difficulties switching to other industries.

Talk to hundreds of ex-Perwaja Steel workers and you will understand this. Talk to the hundreds of steel workers in the US that has recently been laid off despite President Bush's tariff protection for their industry. Talk to the legions of some still unemployed Europeans laid-off in the 1980s and 1990s about their destroyed dreams and lives.

Tax barriers have proven some use in infant industry initiatives but in the long-run, they just breed uncompetitive companies that sap the strength of the economy. They send wrong signal to investors and managers about where they should put their resources and effort. And worse, ignorant workers who work for such industries end up committing their lives to lost causes.

Even when tax barriers are put up temporarily like in the recent case of US steel industry, it does not help. Companies that get such "breather" almost never restructure, believing that somehow that the government can be convinced to give them more help if they get into trouble.

Perhaps his decision is made on the illusion that Proton has 'succeeded' and that his imposition of tariffs to help his son's investment in Megasteel does not seem to harm anyone.

Someone should tell him, and any other government officials who are quick to parrot his ideas and thoughts, that such "success" are illusory and harm is seldom seen when one sits on top of the ivory tower and does not have to hang around to see the long-term effects.