Free Republic
Browse · Search
News/Activism
Topics · Post Article

To: GOPcapitalist
In net economic losses caused by protectionism, they did. This has been shown many times.

Nonsense. They imported next to nothing. They consumed very little in the way of manufactured goods. They grew wealthy through their exports and there was nothing that the tariff did to hinder that. They bragged that their lack of manufacturing and industry and finance protected them from the economic downturns of the time.

311 posted on 02/21/2003 5:25:58 PM PST by Non-Sequitur
[ Post Reply | Private Reply | To 302 | View Replies ]


To: Non-Sequitur
Nonsense.

Not at all. The north enjoyed lesser losses due to the tariff than the south because they regained some of the consumer surplus through the protected industries. The south did not have those same industries and therefore suffered from a greater loss. Add to that the fact that the Morrill bill virtually killed off all American trade with Europe, and the southern export economy would have been ruined.

They grew wealthy through their exports and there was nothing that the tariff did to hinder that.

Your economic ignorance is showing. Trade is a circular process - goods come in and goods go out. In a roundabout way, they essentially pay for each other. Stick a barrier in that circle of trade and the whole process will grind to a halt. That is exactly what happened after 1861's Morrill Act and virtually every other similar protectionist tariff hike in American history.

They bragged that their lack of manufacturing and industry and finance protected them from the economic downturns of the time.

Insofar as the business cycle is concerned, perfectly competitive sectors do exhibit some qualities that ease natural downturns. The same does not apply though when those downturns are artificially created by the government, as is the case with a tariff.

328 posted on 02/21/2003 10:22:29 PM PST by GOPcapitalist
[ Post Reply | Private Reply | To 311 | View Replies ]

Free Republic
Browse · Search
News/Activism
Topics · Post Article


FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson