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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: WhiskeyPapa
Why do you call Taney's decision in Merryman ex parte? As far as I know, it was a legitimate opinion of the circuit court. Taney happened to be the judge to whom the case was assigned, so he decided the case and wrote the opinion. But in what sense was his decision ex parte?
541 posted on 01/20/2004 11:05:13 AM PST by aristeides
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To: rebelyell
"It is truly a disgrace that American children are taught that he was a great president."

No its not. He was great(I'm not saying perfect) and shall remain so regardless of your revisionist sore looserman thinking.
542 posted on 01/20/2004 11:06:16 AM PST by hirn_man
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To: PistolPaknMama
"What about the American Revolution? What is it you think got the colonists so riled up?"

I think it had to do with no representation, something the confederates allways had. They just couldn't stand the fact that their ideas weren't supreme in the country.
543 posted on 01/20/2004 11:09:35 AM PST by hirn_man
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To: Non-Sequitur
Which laws are you referring to?

The most important laws establishing the dictatorship in Germany were the Reichstag Fire Decree, promulgated by President Hindenburg, that lifted the constitutional protections of the Weimar Constitution analogous to our Bill of Rights, and the Enabling Law, passed by the legislature, under which the executive branch -- now Hitler's executive branch -- could enact any laws and even, within certain limits, amend the constitution without any need for approval by the legislature.

544 posted on 01/20/2004 11:13:26 AM PST by aristeides
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To: aristeides
Yeah, that would be found unconstitutional. Although with the Patriot act....
545 posted on 01/20/2004 11:14:47 AM PST by Non-Sequitur
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To: Aurelius
cannons[sic] firing

Why did the author indicate 'cannons' was a misspelling? It's perfectly standard.

546 posted on 01/20/2004 11:15:44 AM PST by The Grammarian
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To: aristeides
Why do you call Taney's decision in Merryman ex parte?

Ex parte is latin for one party. Ex parte proceedings are ones where one party is not present in court and is not represented by counsel. It has nothing to do the legitmacy of the decision

547 posted on 01/20/2004 11:18:49 AM PST by Non-Sequitur
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To: WhiskeyPapa
There is nothing in the act that precludes unilateral action by the President.

The Supreme Court found that a blockade was lawful under the Laws of War and found in existence a War.

Now you are, once again, desperately citing the part of an Act regarding obstruction of the courts, and action permitted to assist the marshals of the courts.

Now, instead of fighting a war, you have The Lincoln combatting obstruction of the judicial system.

The Supreme Court found it was a WAR. They proclaimed the blockade lawful under THE LAWS OF WAR.

548 posted on 01/20/2004 11:21:01 AM PST by nolu chan
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To: Non-Sequitur
Ex parte proceedings are ones where one party is not present in court and is not represented by counsel.

Yes, I'm familiar with that meaning, and, as far as I know, the Merryman proceedings were not ex parte in that sense. I believe the federal government made pleadings in the case.

549 posted on 01/20/2004 11:24:10 AM PST by aristeides
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To: Non-Sequitur; exmarine
[N-S] Because the Constitution gives the Supreme Court either original or appellate jurisdiction on all cases arising under the Constitution, the laws of the United States, etc. and so forth.

U.S. Const. Art 3, Sect 2, Cl 2, "In all other cases before mentioned, the supreme Court shall have appellate Jurisdiction, both as to Law and Fact, with such Exceptions, and under such Regulations as the Congress shall make."

550 posted on 01/20/2004 11:30:19 AM PST by nolu chan
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To: nolu chan
Yes, thank you. The Exceptions Clause allows the Congress TO LIMIT the Courts' jurisdiction. But Congress has abrogated its responsibilities - they sit on their hands while the court makes bad ruling after bad ruling. Moral cowards in my opinion. Who in our government has the TESTICLES to stand up for what is right? I'm sick of spineless jellyfish.
551 posted on 01/20/2004 11:34:18 AM PST by exmarine ( sic semper tyrannis)
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To: exmarine
It's not just a matter of spinelessness. The executive and legislative branches of the federal government find it highly convenient that the courts get to handle their hot potatoes, and also to carry their water by diminishing the powers of the states. Never would have happened without the Nineteenth Amendment.
552 posted on 01/20/2004 11:38:11 AM PST by aristeides
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To: Non-Sequitur
That is another point. The founding fathers clearly intended that the Congress have the most power as it is the branch most accountable to the people (the Congress has the power to limit the Court's jurisdiction). Our government rules only by consent of the governed (of the people, by the people, for the people). When the government starts ruling be decree, in spite of the will of the people and the written Constitution, it violates the principles of a "free republic" (the very title of this forum!).
553 posted on 01/20/2004 11:38:57 AM PST by exmarine ( sic semper tyrannis)
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To: exmarine
Lincoln was only the aggressor if the states had the right to seceede. That right was and is very much in dispute.

Andrew Jackson (no yankee by the way) pretty much summed it up with his Proclamation to South Carolina. Secession is treason and will be met with force. Revisionist neo-confederates pretend like the south had no idea their actions could lead to bloodshed.

The idea that secession was universally supported before Lincoln came along is either dishonest or ignorant.

The South engaged in the election of 1860. They refused to abide by that election.

Maybe you can tell me what is the use of a republican form of government if noone is bound to ever abide by the terms of that government?

And just how can people(not necessarily you) go on an on how we are not a democracy, but see nothing wrong with mob rule at the state level (50% + 1) taking ALL of the citizens of a state out of that republican form of government.

And there were attrocities committed on both sides. The hypocracy drips off both sides.
554 posted on 01/20/2004 11:40:08 AM PST by hirn_man
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To: hirn_man
You are correct in saying that in 1860-1 it was a disputed legal point whether states had the right to secede. But do you go to war to prevent somebody from doing something that is doubtfully legal?
555 posted on 01/20/2004 11:43:29 AM PST by aristeides
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To: WhiskeyPapa
It was only a lower court case in which Supreme Court Chief Justice Roger Taney rendered an ex-parte personal opinion. As such, it was not an authoritative statement of the law of the land.

From Bouvier's Law Dictionary, Rev. 6th ed. (1856):

Ex parte - Of the one part. Many things may be done ex parte, when the opposite party has had notice; an affidavit or deposition is said to be taken ex parte when only one of the parties attends to taking the same.

As such, it was not an authoritative statement of the law of the land.

Even ex parte, that does not render it a "personal" opinion. It was the official, legal opinion of the Circuit court in question, and until appealed, is the "law of the land."

556 posted on 01/20/2004 11:45:39 AM PST by 4CJ (||) Dialing 911 doesn't stop a crime - a .45 does. (||)
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To: aristeides
The executive and legislative branches of the federal government find it highly convenient that the courts get to handle their hot potatoes, and also to carry their water by diminishing the powers of the states.

Yes, so much for federalism and self-government, eh? Self-government is a dead duck - can anyone pretend that any State or City or County is self-governing? There are so many federal regulations, taxes, etc., that self-governance is but a mere memory. The feds even tell the states that they can't erect 10 comandments in their own courthouses, or pass laws against sodomy, which are clearly allowed under the 10th Amendment. The invented doctrine of incorporation came very late in time (20th century) just as the phoney doctrine of separation and church and state (Everson 1947) did.

557 posted on 01/20/2004 11:46:09 AM PST by exmarine ( sic semper tyrannis)
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To: aristeides
Not allways.

But you do when to not do so would set a precedent that would destroy your nation.

558 posted on 01/20/2004 11:47:38 AM PST by hirn_man
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To: Aurelius
Arrogant Southern slave owners and the inhuman social system set up to maintain its false reality could not abide by the the coming end of their feudalistic system. They brought the Civil war on themselves. Rewriting history cannot rewrite the truth.
559 posted on 01/20/2004 11:49:33 AM PST by eleni121 (Preempt and Prevent)
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To: hirn_man
I don't believe allowing the secession of the Lower South would have destroyed our nation.
560 posted on 01/20/2004 11:50:20 AM PST by aristeides
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