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To: conimbricenses

It has been some time since I read Taussig, the authority on US tariff history, but I seem to remember his comment that the rates initially averaged about 15%. I do know Hamilton was not for an oppressive protectionist scheme.

Rates were lowered after the nullification crisis.


536 posted on 08/11/2010 1:58:37 PM PDT by arrogantsob
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To: arrogantsob
There's been a good deal written on average tariff rates since Taussig last published in the 1930's. Pre-1821 rates have to be estimated since they didn't keep good stats, but the current view on the 1790's tariffs puts them somewhere in the 8% range.

As to rates after the nullification crisis:

1. They never dipped below 20%, which was only attained for about a year in the late 1850's.

2. They fluctuated pretty wildly, usually depending on what party was in power in Congress. When the Whigs & later Republicans were in control, rates generally went up. When the Dems were in control, rates generally went down.

3. The immediate post-1833 reductions were botched in their administrative phase due to a poorly written law and were reduced haphazardly and inconsistently for about a decade, before shooting back up again in 1842 when the Whig Congress counteracted them.

In any case, tariffs in the 1816-1861 period were raised to the point of being exorbitant more than once, and at no time resembled the comparatively low and stable rates in place before the war of 1812.

537 posted on 08/11/2010 2:06:22 PM PDT by conimbricenses (Red means run son, numbers add up to nothing.)
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To: arrogantsob

Hamilton was also against extreme protective tariffs because he knew they needed the revenue source, and he believed he could obtain protection by different means through subsidies or “bounties” as he called them without distorting tariff revenue. Hamilton’s economics were muddled though and he did not realize that his proposed policies would have more or less had the same effect on imports.


539 posted on 08/11/2010 2:08:36 PM PDT by conimbricenses (Red means run son, numbers add up to nothing.)
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