The American System: Tariffs, Part 1 Study Questions & Resources

1. What was the most controversial plank of Henry Clay’s American System?

2. Where is the tariff clause found in the U.S. Constitution?

3. Henry Clay suggested there were two interpretations to Article 1 sec 8. What were they?

4. Protective tariffs are a part of which economic system?

5. Hamilton argued that in order for the United States to be secure and prosperous it had to economically independent from Europe, true or false.

6. According to Alexander Hamilton what did a nation have to possess if it was to be economically independent?

7. What three factors prevented the young United States from achieving a competitive manufacturing sector?

8. According to mercantilist, how did a tariff help infant industries to grow?

9. Hamilton argued that if the United States did not develop a competitive manufacturing sector three disastrous effects would befall the country. What where they?

10. Explain how a protective tariff worked.

11. Name an 18th century British critic of mercantilism. What book did he write?

12. Why was there no demand for a protective tariff in the U.S. from 1812-1815?

13. Give 3 reasons for the tariff of 1816.

14. John Randolph presented two early criticisms of the tariff of 1816. What were they?

15. Why did the tariff of 1816 garner support in the South?

16. According to Mathew Carey how did free-trade cause the Panic of 1819?

17. Was the argument that protective tariffs were needed to aid infant industries valid in 1820?

18. Give some arguments why a tariff would not alleviate the depression but possibly make it worse.

19. What did John Taylor and others cite as the reason for the Panic of 1819?

20. What historical event from the 20th century can be cited to demonstrate that tariffs worsen a depression?

Resources

Clarence B. Carson, A Basic History of the United States (Vol.2): the Beginning of the Republic 1775-1825 
A Basic History of the United States (Vol.2): the Beginning of the Republic 1775-1825

Clarence B. Carson, A Basic History of the United States (Vol.3): the Sections and the Civil War 1826-1877
A Basic History of the United States (Vol.3): the Sections and the Civil War 1826-1877

Frederic Bastiat, The Law, (1850)
http://mises.org/books/thelaw.pdf

Henry Clay, In Defense of the American System (1832)
http://www.senate.gov/artandhistory/history/resources/pdf/AmericanSystem.pdf

Henry Clay, Speech On American Industry, March 30 & 31 (1824)
http://oll.libertyfund.org/?option=com_staticxt&staticfile=show.php%3Ftitle=294&chapter=35075&layout=html&Itemid=27

Henry Hazlitt, Economics in 1 Lesson, (1946)
http://library.mises.org/books/Henry%20Hazlitt/Economics%20in%20One%20Lesson.pdf

The American System, Wikipedia
http://en.wikipedia.org/wiki/American_System_(economic_plan)

Alexander Hamilton, Report on Manufactures, (1791)
http://www.constitution.org/ah/rpt_manufactures.pdf

Murray N. Rothbard, The Panic of 1819, (1962)
http://library.mises.org/books/Murray%20N%20Rothbard/The%20Panic%20of%201819%20Reactions%20and%20Policies.pdf

Adam Smith, An Inquiry into the Nature and Causes of the Wealth of Nations (1776)
http://www.econlib.org/library/Smith/smWN.html

Frank Taussig, A Tariff History of the United States, (1909),
http://mises.org/etexts/taussig.pdf

Frank Taussig, State Papers and Speeches on the Tariff (Hamilton, Clay, Webster, Gallatin)
http://oll.libertyfund.org/index.php?option=com_staticxt&staticfile=show.php%3Ftitle=294&Itemid=27

John Taylor of Caroline, Tyranny Unmasked (1821)
http://www.constitution.org/jt/tyr_un.htm

John Taylor, Construction Construed, 
And 
Constitutions Vindicated (1820)
http://www.constitution.org/jt/cccv.htm

W.M. Curtiss, The Tariff Idea (1953)
http://library.mises.org/books/W%20M%20Curtiss/The%20Tariff%20Idea.pdf

Articles

Thomas J. DiLorenzo, Calhoun’s Cause: Free Trade
http://mises.org/daily/996

PBS News Hour, High Foreign Tariffs on US Surfboards: Should We Retaliate?
http://www.pbs.org/newshour/rundown/2013/03/high-foreign-tariffs-on-us-surfboards-should-we-retaliate.html

Gary North, Tariffs as Welfare-State Economics
http://mises.org/daily/6123/Tariffs-as-WelfareState-Economics

Donald Boudreaux, Tariffs and Freedom,
http://www.fee.org/the_freeman/detail/tariffs-and-freedom#axzz2bFBxsmLO

Dean Russell, Tariffs Are Legal Plunder: Tariffs Result in a Net Loss to the National Economy
http://www.fee.org/the_freeman/detail/tariffs-are-legal-plunder#axzz2bFBxsmLO