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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: hirn_man
Regarding secession, I think a good case can be made that secession is illegal, as you pointed out. You may be right. Honestly, I need to do more research before I take any further stands on this issue. I have no ax to grind for pro-secession.
561 posted on 01/20/2004 11:51:18 AM PST by exmarine ( sic semper tyrannis)
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To: Non-Sequitur; GOPcapitalist
[N-S] No, a lower court may determine constitutionality if the Supreme Court declines to take their ruling under consideration. At that time, the lower court decision is accepted as the opinion of the Supreme Court.

No, the lower court (say 2nd Circuit) determines the constitutionality of a law within its own territorial jurisdiction. Such never becomes accepted as the opinion of the Supreme Court by denial of cert. If a court from another jurisdiction (say 9th Circuit) rules differently, the Supreme Court may decide to rule on the issue and resolve it.

When a lower court decision is not appealed to the Supreme Court, or cert is not granted, the lower court decision remains the precedent for that territorial jurisdiction but is not binding as precedent on any other jurisdiction as is a Supreme Court decision.

562 posted on 01/20/2004 11:51:43 AM PST by nolu chan
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To: aristeides
I believe the federal government made pleadings in the case.

You would be wrong.

563 posted on 01/20/2004 11:52:24 AM PST by Non-Sequitur
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To: nolu chan
And your point is?
564 posted on 01/20/2004 11:55:07 AM PST by Non-Sequitur
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To: 4ConservativeJustices; WhiskeyPapa

It was the official, legal opinion of the Circuit court in question, and until appealed, is the "law of the land."

No, Merryman was issued by Chief Justice Taney as an in-chambers opinion from the Supreme Court.

565 posted on 01/20/2004 11:57:12 AM PST by nolu chan
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To: exmarine
" What business did the founders have to sever their ties to mother England? Why is the authority to sever ties with Britain valid, but not the authority for the south to sever ties with the Union?"

The colonists exercised their "right to revolution"(recognized in the declaration of independence). They took chances. If they had lost treason and the gallows awaited them.

The south could of exercised their "right to revolution", but they chose to exercise some unrecognized "right to secession". Once again read Jackson's proclamation to South Carolina.

When you start a revolution, you get held accountable for losing or if you are lucky you get termed "patriot" by the new country you have formed.
566 posted on 01/20/2004 12:01:58 PM PST by hirn_man
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To: Non-Sequitur
[N-S] Because the Constitution gives the Supreme Court either original or appellate jurisdiction on all cases arising...."

My point is that it has jurisdiction over all cases with the EXCEPTION of what Congress says to the contrary. That is a huge exception. It is whatever Congress chooses to say it is. McCardle of Ex Parte McCardle found the distinction particularly relevant.

567 posted on 01/20/2004 12:02:55 PM PST by nolu chan
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To: aristeides
But do you go to war to prevent somebody from doing something that is doubtfully legal?

Do you go to war in support of something that is of doubtful legality?

568 posted on 01/20/2004 12:03:54 PM PST by Ditto ( No trees were killed in sending this message, but billions of electrons were inconvenienced.)
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To: exmarine
I just started reading this thread today and as such I am kind of late to the party.

I see that others have made some of the same points I made a few days before I did.

These threads are like the crack cocaine of Free Republic for me. I mean no offense to anyone personally(well ususally), but get kinda wrapeed up in the arguement.

And I don't have any answers either, just opinions.
569 posted on 01/20/2004 12:09:05 PM PST by hirn_man
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To: hirn_man
Yes, I have changed my mind since my earlier posts on secession after encountering some good arguments in this forum. I can no longer be so dogmatic about the right to secede.
570 posted on 01/20/2004 12:10:24 PM PST by exmarine ( sic semper tyrannis)
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To: WhiskeyPapa
But the fact is that, according to Taney, Congress can't delegate the Writ to the president or the military! What a laugher!

See post 505 for the text (attributed to Jay incorrectly). It seems that Justice Joseph Story also believed that vested powers could not be delegated. Joined by justices Washington, Livingston, Todd, Duvall, Joseph Story and John Marshall. The lone dissenter was William Johnson.

571 posted on 01/20/2004 12:12:01 PM PST by 4CJ (||) Dialing 911 doesn't stop a crime - a .45 does. (||)
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To: Ditto
I am more interested in the morality and legality of actions by my government than I am in the morality and legality of actions of another government.
572 posted on 01/20/2004 12:16:09 PM PST by aristeides
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To: aristeides
What other government?
573 posted on 01/20/2004 12:18:05 PM PST by Ditto ( No trees were killed in sending this message, but billions of electrons were inconvenienced.)
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To: Non-Sequitur
You would be wrong.

Can you point me to a source showing that I am wrong?

574 posted on 01/20/2004 12:18:52 PM PST by aristeides
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To: aristeides
"I don't believe allowing the secession of the Lower South would have destroyed our nation."

I do.

I guess that point, like just about every point concerning the Civil War, is debatable.

Like calling it the Civil War. WBTS, War of Nothern Agression, the insurrection, War of Confederate Stupidity, we can't even agree on what to call the darn thing.
575 posted on 01/20/2004 12:19:14 PM PST by hirn_man
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To: Ditto
You were talking about the Confederacy, weren't you?
576 posted on 01/20/2004 12:19:37 PM PST by aristeides
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To: aristeides
Well if secession is legally doubtful, then the Confederacy as a legitimate government was just as legally doubtful. Since secessionists were those making dubious claims and changing a government long established, was not the onus on them to have the question of legality resolved before they took action?
577 posted on 01/20/2004 12:25:23 PM PST by Ditto ( No trees were killed in sending this message, but billions of electrons were inconvenienced.)
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To: Ditto
To repeat, I am more interested in the morality and legality of actions by my government than I am in the morality and legality of actions of another government.
578 posted on 01/20/2004 12:26:05 PM PST by aristeides
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To: exmarine
I can no longer be so dogmatic about the right to secede.

No offense, but what changed your mind? I have yet to discover any clause that grants the federal government the authority to coerce a state into remaining, no clause that commands the states to remain, no clause that bars them from leaving.

Madison called for the unveiling of the right of secession when abandoning the Articles. The Articles used the word "perpetual" not once, but 5 times, yet the Constitution abandoned that concept.

Three states - New York, Virginia and Rhode Island & Providence Plantations - explicitly reserved the right to resume the powers of self-government at their pleasure in their ratifications. There is no clause that consolidates the states into a single mass of people, no clause that demands a state appeal to the government for permission.

579 posted on 01/20/2004 12:33:47 PM PST by 4CJ (||) Dialing 911 doesn't stop a crime - a .45 does. (||)
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To: 4ConservativeJustices
The Articles used the word "perpetual" not once, but 5 times, yet the Constitution abandoned that concept.

I believe the Constitution's omission of the word "perpetual" was quite deliberate, and thus significant. After all, the very acts of drafting and then ratifying the Constitution constituted a defiance of the Articles' supposed perpetuity. (The Articles only allowed themselves to be amended by a unanimity of states.)

580 posted on 01/20/2004 12:36:57 PM PST by aristeides
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