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The Economics of the Civil War
LewRockwell.com ^ | January 13, 2004 | Mark Thornton and Robert Ekelund

Posted on 01/13/2004 9:01:35 AM PST by Aurelius

Dust jackets for most books about the American Civil War depict generals, politicians, battle scenes, cavalry charges, cannons[sic] firing, photographs or fields of dead soldiers, or perhaps a battle between ironclads. In contrast our book {[url=http://search.barnesandnoble.com/booksearch/isbnInquiry.asp?userid=2XGHOEK4JT&isbn=0842029613&itm=7]Tariffs, Blockades, and Inflation: The Economics of the Civil War Mark Thornton, Steven E. Woodworth (Editor), Robert B. Ekelund[/url]features a painting by Edgar Degas entitled the "Cotton Exchange" which depicts several calm businessmen and clerks, some of them Degas’s relatives, going about the business of buying and selling cotton at the New Orleans Cotton Exchange. The focus of this book is thus on the economic rationality of seemingly senseless events of the Civil War – a critical period in American history.

What caused the war? Why did the Union defeat the Confederacy? What were the consequences of the War? The premise of the book is that historians have a comparative advantage in describing such events, but economists have the tools to help explain these events.

We use traditional economic analysis, some of it of the Austrian and Public Choice variety, to address these principal questions and our conclusions generally run counter to the interpretations of historians. In contrast to historians who emphasize the land war and military strategy, we show that the most important battle took place at sea. One side, the blockade runners, did not wear uniforms or fire weapons at their opponents. The other side, the blockading fleet, was composed of sailors who had weapons and guns but they rarely fired their cannons in hopes of damaging their opponents. Their pay was based on the valued of captured ships. Historians often have argued that the Confederacy lost because it was overly reluctant to use government power and economic controls, but we show the exact opposite. Big Confederate government brought the Confederacy to its knees.

Some now teach that slavery was the sole cause of the Civil War – an explanation that historians have developed in the twentieth century. However, this analysis does not explain why the war started in 1861 (rather than 1851 or 1841) and it fails to explain why slavery was abolished elsewhere without such horrendous carnage.

We emphasize economics and politics as major factors leading to war. The Republicans who came to power in 1860 supported a mercantilist economic agenda of protectionism, inflation, public works, and big government. High tariffs would have been a boon to manufacturing and mining in the north, but would have been paid largely by those in the export-oriented agriculture economy.

Southern economic interests understood the effects of these policies and decided to leave the union. The war was clearly related to slavery, but mainly in the sense that Republican tariffs would have squeezed the profitability out of the slave-based cotton plantation economy to the benefit of Northern industry (especially Yankee textiles and iron manufacturing). Southerners would also have lost out in terms of public works projects, government land giveaways, and inflation.

The real truth about wars is that they are not started over principle, but over power. Wars however, are not won by power on the battlefield, but by the workings and incentives of men who go to work in fields and factories, to those who transport, store and sell consumer goods, and most especially to the entrepreneurs and middlemen who make markets work and adapt to change. This emphasis and this economic account of tariffs, blockade and inflation, like the focus of Degas’s "Cotton Exchange" reveals the most important and least understood aspect of war.


TOPICS: News/Current Events
KEYWORDS: dixie; dixielist
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To: WhiskeyPapa
I might add that Nathan Bedford Forrest approved and praised black soldiers that fought under him as well.....
301 posted on 01/16/2004 7:05:09 PM PST by TexConfederate1861 ("Dixie and Texas Forever")
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To: Non-Sequitur
Nonsense. The boat had been chartered to make the trip to Sumter.

Not according to Captain Abner Doubleday:

"When I asked Anderson for the wire, he said I should have a mile of it, with a peculiar smile that puzzled me for the moment. He then sent for Hall, the post quartermaster, bound him to secrecy, and told him to take three schooners and some barges which had been chartered for the purpose of taking the women and children and six months' supply of provisions to Fort Johnson, opposite Charleston."

The ship captain objected when the soldiers told him to take them to Sumter. They overpowered him.

302 posted on 01/16/2004 7:41:17 PM PST by rustbucket
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To: TexConfederate1861
I am quite sure you are familiar with the speech Lincoln made to the Illinois Legislature in 1857. The man believed, just as many others of his day, that negroes were inferior.

Lincoln was not -in- the Illinois legislature in 1857, so I don't know why he would be making a speech there.

Lincoln never said that blacks were racially inferior to whites (or anyone else). He avoided declaring on that very thing and you can't quote him as saying that.

He -did- say that blacks were socially inferior to whites, and that would be hard to deny.

But I see the "freeze" is on again. You want Lincoln considered on only a partial record. He did say (And I quoted him -- which you don't bother to do) that black soldiers seemed as good as any. And he clearly favored the vote for black soldiers.

Walt

303 posted on 01/16/2004 8:09:27 PM PST by WhiskeyPapa (Virtue is the uncontested prize.)
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To: TexConfederate1861
I might add that Nathan Bedford Forrest approved and praised black soldiers that fought under him as well.....

Quote?

Did he say anything like this:

"When you give the Negro these rights, when you put a gun in his hands, it prophesies something more: it foretells that he is to have the full enjoyment of his liberty and his manhood."

A. Lincoln

Walt

304 posted on 01/16/2004 8:12:26 PM PST by WhiskeyPapa (Virtue is the uncontested prize.)
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To: Non-Sequitur
The boat had been chartered to make the trip to Sumter. The soldiers were able to make the trip without the assistance of the captain, and returned his boat to him when they were done.

There's been a comparision between the attack on Fort Sumter and the attack on Pearl Harbor.

The rebelists position is as ridiculous as saying that when the U.S.S. Ward fired on the Japanese midget sub operating in the Pearl Harbor security zone (and sank same), that a hitherto harmless mass of Japanese planes (just passing by of course) became enraged and attacked Battleship Row.

Walt

305 posted on 01/16/2004 8:20:52 PM PST by WhiskeyPapa (Virtue is the uncontested prize.)
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To: stand watie
lincoln, the GREAT spiller of innocent blood,stone RACIST,tyrant & CHEAP politician I think ...

I think you Neo-Confederates need to follow the example of the Confederate prisoner of war who listened to Lincoln's Gettysburg address, and later wrote to his mother: "WE HAVE GOT TO STOP HATING THIS MAN!"

306 posted on 01/16/2004 8:43:43 PM PST by pawdoggie
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To: rustbucket; Non-Sequitur
The ship captain objected when the soldiers told him to take them to Sumter. They overpowered him.

I'm inclined to believe Rustbucket on this, in no small part because he visited Ft. Sumter recently and probably got this tidbit from the horse's mouth.

307 posted on 01/16/2004 8:47:29 PM PST by mac_truck (Aide toi et dieu l’aidera)
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To: mac_truck; Non-Sequitur
Thanks, mac. The information did indeed come from the trip I made to Fort Sumter in October. It came from a book I bought at the park store entitled, The Seige of Charleston, 1861-1865 by E. Milby Burton (1970).

From the back cover of the book: "The author, the director of the Charleston Museum and a retired naval officer, has brought together, mainly from original sources, more information on the seige than is to be found elsewhere." (American Historical Review)

Concerning the move to Sumter, the book says in part, "He [Anderson] instructed Hall to delay unloading his personnel and cargo under the pretext of finding suitable quarters at Fort Johnson. ... When the last man from Moultrie was on Sumter, the two guns were fired, signaling recall of the schooners waiting at Fort Johnson with the women, children and supplies aboard. The captain of one of the schooners, realizing that he had been duped, put up a fight and had to be overcome with force."

I discovered at the Fort that mac_truck knew more about the situation inside the Fort at the time of Doubleday's arrival (i.e., how many laborers were present) than the two park rangers on duty did. I got different numbers from the two rangers, and it was clear they were making educated guesses. Mac, on the other hand, had provided some documentation to support his case. Hats off to mac on that one.

As lentulusgracchus once observed, these threads are like a graduate seminar on the war.

308 posted on 01/16/2004 9:37:51 PM PST by rustbucket
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To: WhiskeyPapa
The Lane had no orders to fire on the Nashville.

Yet it did so anyway. Go figure.

309 posted on 01/16/2004 10:30:08 PM PST by GOPcapitalist
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To: WhiskeyPapa
President Lincoln didn't expect such

He expected a war to break out and told Gustavus Fox that much.

and nothing like the attack on PH occured. No one was even killed in the Fort Sumter bombardment.

Which begs the question of why YOU made a pearl harbor comparison to begin with.

310 posted on 01/16/2004 10:45:52 PM PST by GOPcapitalist
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To: zelig
ping
311 posted on 01/16/2004 10:47:27 PM PST by nutmeg (Is the DemocRATic party extinct yet?)
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To: Non-Sequitur
And discuss what, informally or otherwise?

Secession, the forts, avoiding a war, or AT THE VERY LEAST maintaining the status quo by inaction on both sides in hopes that time would allow cooler heads to prevail.

312 posted on 01/16/2004 10:47:54 PM PST by GOPcapitalist
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To: WhiskeyPapa
Can you support that in the record?

Here's the link. Have at it. http://memory.loc.gov/cgi-bin/ampage?collId=llcg&fileName=063/llcg063.db&recNum=642

313 posted on 01/16/2004 10:50:58 PM PST by GOPcapitalist
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To: Non-Sequitur
So you believe that Pearl Harbor was the United State's fault?

No, though your buddy Wlat may seeing as he attempted to draw comparison between Pearl Harbor and Lincoln's provocations at Sumter.

314 posted on 01/16/2004 10:54:46 PM PST by GOPcapitalist
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To: GOPcapitalist
Secession, the forts, avoiding a war, or AT THE VERY LEAST maintaining the status quo by inaction on both sides in hopes that time would allow cooler heads to prevail.

Nonsense. That wasn't part of their charter. They were instructed to negotiate the establishment of relations between governments. To obtain recognition of the legitimacy of the southern rebellion. And only then to negotiate "for the settlement of all questions of disagreement between the two governments..." Status quo wasn't part of the picture.

315 posted on 01/17/2004 3:55:21 AM PST by Non-Sequitur
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To: pawdoggie
I think you Neo-Confederates need to follow the example of the Confederate prisoner of war who listened to Lincoln's Gettysburg address, and later wrote to his mother: "WE HAVE GOT TO STOP HATING THIS MAN!"

Ask stand waite or any of these other sothron types to stop hating Lincoln or Yankees? You might as well ask them to stop breathing.

316 posted on 01/17/2004 3:57:54 AM PST by Non-Sequitur
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To: rustbucket; mac_truck
We can take this to absurd levels and go back a few days to southern mobs marching through the streets of Charleston and James Petigru's warning to Major Anderson that plans were afoot to seize the forts. But there is a difference in the actions. Major Anderson may have appropriated the boat to move his men to Sumter. He may have locked the captain below. But in the end the captain was released and the boat returned to him unharmed. The same can't be said for the property seized by the southern forces.
317 posted on 01/17/2004 4:01:50 AM PST by Non-Sequitur
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To: WhiskeyPapa
Prior to the war the only thing that Nathan Bedford Forrest had to say about black men of his acquaintance was something like, "Sold to the gentlemen in the blue coat."
318 posted on 01/17/2004 4:03:26 AM PST by Non-Sequitur
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To: GOPcapitalist
Can you support that in the record?

[that many expected a long war]

Here's the link. Have at it. http://memory.loc.gov/cgi-bin/ampage?collId=llcg&fileName=063/llcg063.db&recNum=642

That link went to 1863.

Politicans saying in 1863 that back in 1861 -they- expected a long war. Not very convincing.

Walt

319 posted on 01/17/2004 4:42:55 AM PST by WhiskeyPapa (Virtue is the uncontested prize.)
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To: hosepipe
But there are still remnants of the Republic. Heck, if we lived in a democracy, Al Gore would be the president!
320 posted on 01/17/2004 5:49:59 AM PST by Dec31,1999
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