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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: Non-Sequitur
Yet I have yet to see a single criticizm directed towards the south or the Davis regime.

Give it up, tu quoque boy. There is no rule saying that in order to legitimately criticize Lincoln one must first make an equal number of criticisms of unrelated subject matter about Jeff Davis.

341 posted on 01/17/2004 10:50:54 PM PST by GOPcapitalist
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To: WhiskeyPapa; CIBGUY
"-- ah, those areas came under the president's war powers."

Uh, I'm sorry...where exactly were the "president's war powers" enumerated in the US Constitution?

Does that give him carte blanche to discard individual's and state's rights as well?
342 posted on 01/17/2004 11:25:55 PM PST by Veracious Poet (Cash cows are sacred in America...how else are career politicians gonna get their golden parachutes?)
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To: rebelyell
"Dishonest abe raised an army to invade our states. All we wanted was to be left alone, we had no desire to bother the states that remained in the union. Instead, a tyrant with little regard for the Constitution waged a war that resulted in the deaths of 600,000 men and of the republic our founders gave us."

Ah, but the ends justifies the means for most Americans...I can't believe people think Lincoln "The Father of Big Government" was such a great man, he almost destoyed the country due to his political rhetoric.
343 posted on 01/17/2004 11:43:19 PM PST by Veracious Poet (Cash cows are sacred in America...how else are career politicians gonna get their golden parachutes?)
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To: GOPcapitalist
And here I always dated the war to the first deaths resulting from combat between forces supporting the Confederacy and those opposed (Texas, April 15, 1861).

The old newspapers also talk of a western fort taken, then retaken by the other side long before the attack on Sumter. Whether these actions involved gunfire, I don't know.

There was, of course, gunfire at Fort Pickens on January 8, 1861, the day before the Star of the West incident. Twenty men (some say troops from Florida and Alabama, others say citizens) entered the fort expecting it to be empty and fled when fired at by a sentry. That is the first actual shot I'm aware of. Shots were also fired from Fort Pickens on January 13 at a group of armed men outside the fort.
344 posted on 01/18/2004 12:25:18 AM PST by rustbucket
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To: Veracious Poet
"-- ah, those areas came under the president's war powers."

Uh, I'm sorry...where exactly were the "president's war powers" enumerated in the US Constitution?

Article II, Section 2

"Clause 1: The President shall be Commander in Chief of the Army and Navy of the United States, and of the Militia of the several States, when called into the actual Service of the United States;..."

President Lincoln wrote:

"You dislike the emancipation proclamation; and perhaps, would have it retracted. You say it is unconstitutional--I think differently. I think the Constitution invests the commander in chief with the law of war, in time of war. The most that can be said, if so much, is, that slaves are property. Is there--has there ever been--any question that by the law of war, property, both of enemies and friends, may be taken when needed? And is it not needed whenever taking it helps us, or hurts the enemy?"

Whatever you think of it, it is a commonly held interpretation.

Note also that the Militia Act of 1795 leaves when to call out the militia to the judgement of the president.

Walt

345 posted on 01/18/2004 1:41:21 AM PST by WhiskeyPapa (Virtue is the uncontested prize.)
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To: GOPcapitalist
This one should do it.

http://memory.loc.gov/cgi-bin/ampage?collId=llcg&fileName=056/llcg056.db&recNum=474

I don't see anything there either to suggest that a large number of people thought in 1861 that the war would be a long one.

It's generally accepted that people on both sides thought that the other would yield without much fighting.

President Lincoln says in his second inaugural that no one anticiaptated the war's duration.

Walt

346 posted on 01/18/2004 1:49:47 AM PST by WhiskeyPapa (Virtue is the uncontested prize.)
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To: mac_truck; TexConfederate1861
Oh there you are WRONG! I will provide the quotes by the end of the day today.

tick, tick, tick...

I thought of that too.

If texconfed wanted to he could find the one speech where Lincoln said "as long as they live together" one race must be superior to the other. But that is a social arrangement.

This famous statement is from the 1858 debates.

Lincoln also varied his text slightly as the debates went on (and moved further south in Illnois).

"I have no purpose to introduce political and social equality between the white and the black races. There is a physical difference between the two, which in my judgment will probably forever forbid their living together upon the footing of perfect equality, and inasmuch as it becomes a necessity that there must be a difference, I, as well as Judge Douglas, am in favor of the race to which I belong, having the superior position...."

"...will probably..."

"... inasmuch as it becomes a necessity..."

Now, what would cause a superior/inferior position of whites and blacks to become a --necessity--?

Nothing.

It's Lincoln wriggling out of a tough question like any politician.

That was in 1858. Later, President Lincoln did work for full rights for blacks.

Walt

347 posted on 01/18/2004 1:59:52 AM PST by WhiskeyPapa (Virtue is the uncontested prize.)
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To: stand watie
the REAL REASON you can't/won't admit that slavery was NOT a major cause of TWBTS is that doing so would force you to admit that the damnyankees were less than perfect and, in point of fact, were HATEFILLED, intrusive, imperialistic,self-righteous crusaders against FREEDOM!

The REAL REASON I can't/won't admit that is because that would be wrong. Defense of the institution of slavery was by far the single, most important reason for the southern rebellion was defense of the institution of slavery. All evidence supports that.

348 posted on 01/18/2004 4:00:11 AM PST by Non-Sequitur
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To: stand watie
we'll stop dispising lincoln, the tyrant & WAR CRIMINAL...

You could not stop hating Lincoln or Northerners if your life depended on it.

349 posted on 01/18/2004 4:01:44 AM PST by Non-Sequitur
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To: GOPcapitalist
He was offered several opportunities to negotiate and he knowingly shunned them...

He was offered one chance to accept the legitimacy of the southern rebellion. That was the primary purpose of the so-called commissioners. Everything else was secondary. An end to the rebellion was not on the table, so far as the Davis regime was concerned, so there was nothing to talk about. Had the discussions been open to all possibilities, and had Lincoln spurned that chance, then you would have an argument. But expecting Lincoln to surrender, and then criticize him when he did not, is nonsense.

350 posted on 01/18/2004 4:06:06 AM PST by Non-Sequitur
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To: GOPcapitalist
Give it up, tu quoque boy.

Oh, so we're back to musical definitions. Well, massa GOP, I can't hardly keep track of every time you change your mind about what tu quoque means.

351 posted on 01/18/2004 4:08:26 AM PST by Non-Sequitur
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To: rustbucket
Tell that to the owners of fugitive slaves not returned by Northern states.

Well, if you really want to get down to root causes, if Richard, Duke of York, had not been named Governor of Ireland in 1449 then you would not have had the amnity between the Celts and the Saxons which manifested itself in 1860. </sarcasm>

352 posted on 01/18/2004 4:36:30 AM PST by Non-Sequitur
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To: Jokelahoma
I'm exceeding curious from where that hatred stems...

My belief is that he got bitten by a Yankee when he was a baby. But that's only a guess.

353 posted on 01/18/2004 4:39:02 AM PST by Non-Sequitur
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To: GOPcapitalist; Non-Sequitur
There is no rule saying that in order to legitimately criticize Lincoln one must first make an equal number of criticisms of unrelated subject matter about Jeff Davis.

Non-seq wasn't violating some neo-secessionist rule of argument (lol). He was refuting a poster's claim of non-bias, by pointing out no criticism of the Davis regime accompanied that of Lincoln's. A fairly uncomplicated chain of logic that even you would have difficulty disagreeing with.

IOW, it would seem you have squawked in latin prematurely.

354 posted on 01/18/2004 8:22:35 AM PST by mac_truck (Aide toi et dieu l’aidera)
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To: mac_truck
A fairly uncomplicated chain of logic that even you would have difficulty disagreeing with.

Actually, he just wanted a chance to call me 'boy' again. He believes in those old sothron traditions.

355 posted on 01/18/2004 8:35:30 AM PST by Non-Sequitur
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To: Non-Sequitur
...if Richard, Duke of York, had not been named Governor of Ireland in 1449 then you would not have had the amnity between the Celts and the Saxons which manifested itself in 1860

As usual, you have your history wrong. From: (Richard of York).

In 1449 Richard, Duke of York, was appointed governor of Ireland and made a great impression on the Irish and Anglo-Irish. When Richard of York challenged for the throne Ireland supported him.

Richard's perhaps illegitimate son, Edward IV, King of England, had trouble with the Irish. And of course, Richard was a Plantagenet, not a Saxon (though I haven't traced his family line).

356 posted on 01/18/2004 10:20:07 AM PST by rustbucket
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To: mac_truck
"A fairly uncomplicated chain of logic that even you would have difficulty disagreeing with."

Not so.

Description of Ad Hominem Tu Quoque

This fallacy is committed when it is concluded that a person's claim is false because 1) it is inconsistent with something else a person has said or 2) what a person says is inconsistent with her actions. This type of "argument" has the following form:


Person A makes claim X.
Person B asserts that A's actions or past claims are inconsistent with the truth of claim X.
Therefore X is false.
The fact that a person makes inconsistent claims does not make any particular claim he makes false (although of any pair of inconsistent claims only one can be true - but both can be false). Also, the fact that a person's claims are not consistent with his actions might indicate that the person is a hypocrite but this does not prove his claims are false.

So, it would seem that Non continues to engage in boring, juvenile logical fallacy shtick, thus the name 'boy'.

357 posted on 01/18/2004 11:42:29 AM PST by PeaRidge
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To: PeaRidge
I'll defer to you and your friend H. Dumpty on this matter.
358 posted on 01/18/2004 1:26:06 PM PST by mac_truck (Aide toi et dieu l’aidera)
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To: WhiskeyPapa
Thanks, you saved me the trouble....

That pretty much speaks for itself. My analysis of the speech is different. Sounds like he is pretty much as racist as most people were in those days, including Judge Taney.....JUST ADMIT IT.....:)
359 posted on 01/18/2004 2:49:16 PM PST by TexConfederate1861 ("Dixie and Texas Forever")
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To: WhiskeyPapa
Thanks, you saved me the trouble....

That pretty much speaks for itself. My analysis of the speech is different. Sounds like he is pretty much as racist as most people were in those days, including Judge Taney.....JUST ADMIT IT.....:)
360 posted on 01/18/2004 2:52:11 PM PST by TexConfederate1861 ("Dixie and Texas Forever")
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