The Civil War began because of an increasing push to place protective 
tariffs favoring Northern business interests and every Southern household 
paid the price.
---
so did Abe.

On Sunday, June 30, 2013 8:27:37 AM UTC-5, MJ wrote:
>
>  
> 6/23/2013
> *Protective Tariffs: The Primary Cause Of The Civil War
> *David John Marotta 
>
>  6/30/2013: We were surprised by some of the reactions to our recent 
> article on protective tariffs as one of the primary causes of the Civil 
> War. We have written a post expanding on our citations and reasoning in 
> Jefferson 
> Davis Posthumously Responds to Our Readers’ 
> Reactions<http://www.marottaonmoney.com/jefferson-davis-posthumously-responds-to-our-readers-reactions/>
>
> Although they opposed permanent tariffs, political expedience in spite of 
> sound economics prompted the Founding Fathers to pass the first U.S. tariff 
> act <http://www.marottaonmoney.com/what-our-founding-fathers-got-wrong/>. 
> For 72 years, Northern special interest groups used these protective 
> tariffs<http://www.marottaonmoney.com/do-tariffs-protect-an-infant-industry/>to
>  exploit the South for their own benefit. Finally in 1861, the oppression 
> of those import duties started the Civil War.
>
> In addition to generating revenue, a tariff hurts the ability of 
> foreigners to sell in domestic markets. An affordable or high-quality 
> foreign good is dangerous competition for an expensive or low-quality 
> domestic one. But when a tariff bumps up the price of the foreign good, it 
> gives the domestic one a price advantage. The rate of the tariff varies by 
> industry.
>
> If the tariff is high enough, even an inefficient domestic company can 
> compete with a vastly superior foreign company. It is the industry’s 
> consumers who ultimately pay this 
> tax<http://www.marottaonmoney.com/the-benefits-of-free-trade-defined-the-consumer-always-wins/>and
>  the industry’s producers who benefit in profits.
>
> As early as the Revolutionary War, the South primarily produced cotton, 
> rice, sugar, indigo and tobacco. The North purchased these raw materials 
> and turned them into manufactured goods. By 1828, foreign manufactured 
> goods faced high import taxes. Foreign raw materials, however, were free of 
> tariffs.
>
> Thus the domestic manufacturing industries of the North benefited twice, 
> once as the producers enjoying the protection of high manufacturing tariffs 
> and once as consumers with a free raw materials market. The raw materials 
> industries of the South were left to struggle against foreign competition.
>
> Because manufactured goods were not produced in the South, they had to 
> either be imported or shipped down from the North. Either way, a large 
> expense, be it shipping fees or the federal tariff, was added to the price 
> of manufactured goods only for Southerners. Because importation was often 
> cheaper than shipping from the North, the South paid most of the federal 
> tariffs.
>
> Much of the tariff revenue collected from Southern consumers was used to 
> build railroads and canals in the North. Between 1830 and 1850, 30,000 
> miles of track was laid. At its best, these tracks benefited the North. 
> Much of it had no economic effect at all. Many of the schemes to lay track 
> were simply a way to get government subsidies. Fraud and corruption were 
> rampant.
>
> With most of the tariff revenue collected in the South and then spent in 
> the North, the South rightly felt exploited. At the time, 90% of the 
> federal government’s annual revenue came from these taxes on imports.
>
> [image: Tariffs at the South's expense.] 
>  “Cartoon drawn during the nullification controversy showing the Northern 
> domestic manufacturers getting fat at the expense of impoverishing the 
> South under protective tariffs.” – Encyclopedia of 
> Britannica<http://www.britannica.com/EBchecked/media/113277>
>
> Historians Paul Collier and Anke Hoeffer found that a few common factors 
> increase the likelihood of secession in a region: lower wages, an economy 
> based on raw materials and external exploitation. Although popular movies 
> emphasize slavery as a cause of the Civil War, the war best fits a 
> psycho-historical model of the South rebelling against Northern 
> exploitation.
>
> Many Americans do not understand this fact. A non-slave-owning Southern 
> merchant angered over yet another proposed tariff act does not make a 
> compelling scene in a movie. However, that would be closer to the original 
> cause of the Civil War than any scene of slaves picking cotton.
>
> [image: Morrill Tariff Cartoon]  
> Morrill Tariff Cartoon, featured in Harper’s 
> Weekly<http://www.sonofthesouth.net/leefoundation/civil-war/1861/april/abe-lincoln-cartoon.htm>on
>  April 13, 1861 saying:THE NEW TARIFF ON DRY GOODS.
>
> Unhappy condition of the Optic Nerve of a Custom House Appraiser who has 
> been counting the Threads in a Square Yard of Fabric to ascertain the duty 
> thereon under the New MORRILL Tariff. The Spots and Webs are well-known 
> Opthalmic Symptoms. It is confidently expected that the unfortunate man 
> will go blind.
>
> Slavery was actually on the wane. Slaves visiting England were free 
> according to the courts in 1569. France, Russia, Spain and Portugal had 
> outlawed slavery. Slavery had been abolished everywhere in the British 
> Empire <http://www.forbes.com/companies/empire/> 27 years earlier thanks 
> to William Wilberforce. In the United States, the transport of slaves had 
> been outlawed 53 years earlier by Thomas Jefferson in the Act Prohibiting 
> the Importation of Slaves (1807) and the Abolition of the Slave Trade Act 
> in England (1807). Slavery was a dying and repugnant institution.
>
> The rewritten history of the Civil War began with Lincoln as a brilliant 
> political tactic to rally public opinion. The issue of slavery provided 
> sentimental leverage, whereas oppressing the South with hurtful tariffs did 
> not. Outrage against the greater evil of slavery served to mask the 
> economic harm the North was doing to the South.
>
> The situation in the South could be likened to having a legitimate legal 
> case but losing the support of the jury when testimony concerning the 
> defendant’s moral failings was admitted into the court proceedings
>
> Toward the end of the war, Lincoln made the conflict primarily about the 
> continuation of slavery. By doing so, he successfully silenced the debate 
> about economic 
> issues<http://www.marottaonmoney.com/the-benefits-of-free-trade-agreements-the-country-always-wins/>and
>  states’ 
> rights<http://www.marottaonmoney.com/the-ninth-amendment-the-value-of-our-unenumerated-rights/>.
>  
> The main grievance of the Southern states was tariffs. Although slavery was 
> a factor at the outset of the Civil War, it was not the sole or even 
> primary cause.
>
> The Tariff of 1828, called the Tariff of Abominations in the South, was 
> the worst exploitation. It passed Congress 105 to 94 but lost among 
> Southern congressmen 50 to 3. The South argued that favoring some 
> industries over others was unconstitutional.
>
> The South Carolina Exposition and Protest written by Vice President John 
> Calhoun warned that if the tariff of 1828 was not repealed, South Carolina 
> would secede. It cited Jefferson and Madison for the precedent that a state 
> had the right to reject or nullify federal law.
>
> In an 1832 state legislature campaign speech, Lincoln defined his 
> position, saying, “My politics are short and sweet, like the old woman’s 
> dance. I am in favor of a national bank . . . in favor of the internal 
> improvements system and a high protective tariff.” He was firmly against 
> free trade and in favor of using the power of the federal government to 
> benefit specific industries like Lincoln’s favorite, Pennsylvania steel.
>
> The country experienced a period of lower tariffs and vibrant economic 
> growth from 1846 to 1857. Then a bank failure caused the Panic of 1857. 
> Congress used this situation to begin discussing a new tariff act, later 
> called the Morrill Tariff of 1861. However, those debates were met with 
> such Southern hostility that the South seceded before the act was passed.
>
> The South did not secede primarily because of slavery. In Lincoln’s First 
> Inaugural Address he promised he had no intention to change slavery in the 
> South. He argued it would be unconstitutional for him to do so. But he 
> promised he would invade any state that failed to collect tariffs in order 
> to enforce them. It was received from Baltimore to Charleston as a 
> declaration of war on the South.
>
> Slavery was an abhorrent practice. It may have been the cause that rallied 
> the North to win. But it was not the primary reason why the South seceded. 
> The Civil War began because of an increasing push to place protective 
> tariffs favoring Northern business interests and every Southern household 
> paid the price.
>
> http://www.forbes.com/sites/davidmarotta/2013/06/23/protective-tariffs-the-primary-cause-of-the-civil-war/
>  
>

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