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

Skip to comments.

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
Navigation: use the links below to view more comments.
first previous 1-20 ... 561-580581-600601-620 ... 1,121-1,131 next last
To: aristeides
To repeat, I am more interested in the morality and legality of actions by my government than I am in the morality and legality of actions of another government.

I repeat, what other government? If it was legally doubtful, and made no attempt to establish its legitimacy, we can not recognize it as a government.

As to your concern about "your government" allow me to turn it around on you. Would they not have been derelict in their legal, moral and sworn constitutional duty to allow a legally doubtful regiem to assume control over 40% of the nation's territory without offering resistance?

I know damn well I'd be calling for impeachment if that were to happen today.

What would you do?

581 posted on 01/20/2004 12:37:19 PM PST by Ditto ( No trees were killed in sending this message, but billions of electrons were inconvenienced.)
[ Post Reply | Private Reply | To 578 | View Replies]

To: 4ConservativeJustices
Three states - New York, Virginia and Rhode Island & Providence Plantations - explicitly reserved the right to resume the powers of self-government at their pleasure in their ratifications.

They reserved that right only if a Bill of Rights were not amended to the Constitution. The BOR was passed by the 1st Congress, and radified by the states, including those three.

582 posted on 01/20/2004 12:40:45 PM PST by Ditto ( No trees were killed in sending this message, but billions of electrons were inconvenienced.)
[ Post Reply | Private Reply | To 579 | View Replies]

To: Ditto
If the Confederacy was, as you argue, no government at all, then it was even further from being my government.

I believe the Confederacy as it existed prior to Lincoln's provoking the secession of the Upper South by resisting the secession of the Lower South occupied nothing close to 40% of the territory of the U.S. As a matter of fact, I suspect the Lower South, by itself, could not have made a go of it, and would eventually have sued for readmittance to the Union. Without a war. When the Upper South refused to secede, Lincoln won a great victory, which he then proceeded to throw away. All of this is not just my opinion. Seward thought the same at the time.

583 posted on 01/20/2004 12:43:38 PM PST by aristeides
[ Post Reply | Private Reply | To 581 | View Replies]

To: 4ConservativeJustices
There is a big difference between dissolving a political entity by mutual consent and leaving a political entity.

The Aticles were dissolved. There was no secession involved. There was nothing left to seceed from.
584 posted on 01/20/2004 12:59:01 PM PST by hirn_man
[ Post Reply | Private Reply | To 579 | View Replies]

To: hirn_man
The Aticles were dissolved. There was no secession involved. There was nothing left to seceed from.

I don't think that's what North Carolina and Rhode Island thought.

585 posted on 01/20/2004 1:00:11 PM PST by aristeides
[ Post Reply | Private Reply | To 584 | View Replies]

To: hirn_man
And even one state -- never mind two -- had the right to prevent the dissolution of the Articles, which proclaimed themselves perpetual and which, under their terms, could only be modified by a unanimous decision of the states.
586 posted on 01/20/2004 1:01:55 PM PST by aristeides
[ Post Reply | Private Reply | To 585 | View Replies]

To: aristeides
I believe the Confederacy as it existed prior to Lincoln's provoking the secession of the Upper South by resisting the secession of the Lower South occupied nothing close to 40% of the territory of the U.S.

Whatever. If it was only 2%, would that be ok to just forget about?

As a matter of fact, I suspect the Lower South, by itself, could not have made a go of it, and would eventually have sued for re admittance to the Union. Without a war. When the Upper South refused to secede, Lincoln won a great victory, which he then proceeded to throw away.

He threw it away when Davis fired on Sumter? As you said, the lower south itself was a very economically and politically shaky confederation. Davis is the guy who needed a war to move the upper south to his side. Should Lincoln's response have been to back down from the illegitimate regime in the lower south, by abandoning its soldiers, surrendering property and turning its cheek when the flag was fired upon?

Is that what you would do as President today?

What was and is the government's moral, legal and Constitutional duty when faced with open insurrection?

587 posted on 01/20/2004 1:02:34 PM PST by Ditto ( No trees were killed in sending this message, but billions of electrons were inconvenienced.)
[ Post Reply | Private Reply | To 583 | View Replies]

To: Ditto
If I had been president, I would have followed Seward's advice. And there would have been no war.
588 posted on 01/20/2004 1:04:51 PM PST by aristeides
[ Post Reply | Private Reply | To 587 | View Replies]

To: aristeides
Gosh I was unaware that those two states hadn't joined the Union.

What country did North Carolina and Rhode Island form?
589 posted on 01/20/2004 1:06:26 PM PST by hirn_man
[ Post Reply | Private Reply | To 585 | View Replies]

To: Ditto
They reserved that right only if a Bill of Rights were not amended to the Constitution.

No. New York said, 'That the powers of government may be reassumed by the people whensoever it shall become necessary to their happiness ... Under these impressions, and declaring that the rights aforesaid cannot be abridged or violated".

"[I]n confidence that the amendments which shall have been proposed to the said Constitution will receive an early and mature consideration." They trusted that the proposed amendments (following their ratification) would be addressed, they did not state that "the rights aforesaid could be abridged or violated" upon ratification of a Bill of Rights or were superseded.

Virginia declared and made "known that the powers granted under the Constitution, being derived from the people of the United States may be resumed by them whensoever the same shall be perverted to their injury or oppression", that "whatsoever imperfections may exist in the Constitution, ought rather to be examined in the mode prescribed therein, than to bring the Union into danger by a delay, with a hope of obtaining amendments previous to the ratification". Again, nothing contingent upon ratification of a Bill of Rights

Rhose Island wrote, "That the powers of government may be reassumed by the people whensoever it shall become necessary to their happiness", "Under these impressions, and declaring that the rights aforesaid cannot be abridged or violated, and that the explanations aforesaid are consistent with the said Constitution, and in confidence that the amendments hereafter mentioned will receive an early and mature consideration, and, conformably to the fifth article of said Constitution, speedily become a part thereof." Ditto.

590 posted on 01/20/2004 1:06:33 PM PST by 4CJ (||) Dialing 911 doesn't stop a crime - a .45 does. (||)
[ Post Reply | Private Reply | To 582 | View Replies]

To: hirn_man
North Carolina and Rhode Island eventually joined the new Union, after they had been forced to do so by the -- technically illegal -- adhesion of the other states. Rhode Island did so a year or so after the new federal government was up and running, and Washington occupying the presidency. Their hand was forced.
591 posted on 01/20/2004 1:08:32 PM PST by aristeides
[ Post Reply | Private Reply | To 589 | View Replies]

To: hirn_man
The Aticles were dissolved.

Please post, for our reference, the documents signed by each of the states, formally dissolving the Articles and rendering it null and void. It required unanimous consent to do so.

592 posted on 01/20/2004 1:10:09 PM PST by 4CJ (||) Dialing 911 doesn't stop a crime - a .45 does. (||)
[ Post Reply | Private Reply | To 584 | View Replies]

To: 4ConservativeJustices
If New York, Rhode Island, and Virginia were so insistant that they could seceede, maybe they should have got it written in the SUPREME LAW OF THE LAND.

You know the constitution. That thing that neo-confederates think should be used to toilet paper when it doesn't suit them.

Words have meaning despite mystical mumbo jumbo like secession where things that are given away freely are really retained and not given away.
593 posted on 01/20/2004 1:10:41 PM PST by hirn_man
[ Post Reply | Private Reply | To 590 | View Replies]

To: nolu chan
While I agree that a Circuit Court may rule on cases in its district, I find the idea that something may be Constitutional in the 2nd District and not Constitutional in the 9th to be suspect. Only the Supreme Court can determine that.
594 posted on 01/20/2004 1:17:10 PM PST by Non-Sequitur
[ Post Reply | Private Reply | To 562 | View Replies]

To: aristeides
Can you point me to a source showing that I am wrong?

Read Taney's decision.

595 posted on 01/20/2004 1:20:40 PM PST by Non-Sequitur
[ Post Reply | Private Reply | To 574 | View Replies]

To: hirn_man
If New York, Rhode Island, and Virginia were so insistant that they could seceede, maybe they should have got it written in the SUPREME LAW OF THE LAND.

'This Constitution, and the Laws of the United States which shall be made in Pursuance thereof; and all Treaties made, or which shall be made, under the Authority of the United States, shall be the supreme Law of the Land.'

Federal laws pursuant to the Constitution have legal status - please cite one prohibiting secession. Cite one requiring states to petition for permission to leave.

The 10th Amendment - a part of the Constitution,states, '[t]he powers not delegated to the United States by the Constitution, nor prohibited by it to the States, are reserved to the States respectively, or to the people.'

There is no delegtion from the states to the federal government to bar secession, nor are the states prohibited from leaving. It looks like it is written into the Supreme law of the land.

596 posted on 01/20/2004 1:20:41 PM PST by 4CJ (||) Dialing 911 doesn't stop a crime - a .45 does. (||)
[ Post Reply | Private Reply | To 593 | View Replies]

To: 4ConservativeJustices
Well I would say the Constitution of the United States, ratified by the 13 entities that had been governed under the Articles of Confederation(I spelled Articles right this time) pretty well rendered them null and void without HAVING to formally disolve them.

But thats just me.
597 posted on 01/20/2004 1:22:32 PM PST by hirn_man
[ Post Reply | Private Reply | To 592 | View Replies]

To: 4ConservativeJustices
There you go again with you mystical power of secession.

It is a power that only exists in the fevered minds of secessionists.

Much like when Saddam Hussein declared the laws of gravity inoperable in Iraq.
598 posted on 01/20/2004 1:24:43 PM PST by hirn_man
[ Post Reply | Private Reply | To 596 | View Replies]

To: 4ConservativeJustices
My take on the 10th amendment was it is a safegaurd against intrusion by the Feds into state matters which the Fed had no business interfering in. It wasn't a license for the states to destroy the nation.
599 posted on 01/20/2004 1:27:14 PM PST by hirn_man
[ Post Reply | Private Reply | To 596 | View Replies]

To: Non-Sequitur
The commander of the fort, Gen. George Cadwalader, by whom he is detained in confinement, in his return to the writ, does not deny any of the facts alleged in the petition. He states that the prisoner was arrested by order of Gen. Keim, of Pennsylvania, and conducted as a prisoner to Fort McHenry by his order, and placed in his (Gen. Cadwalader’s) custody, to be there detained by him as a prisoner.

Doesn't sound ex parte to me.

600 posted on 01/20/2004 1:28:18 PM PST by aristeides
[ Post Reply | Private Reply | To 595 | View Replies]


Navigation: use the links below to view more comments.
first previous 1-20 ... 561-580581-600601-620 ... 1,121-1,131 next last

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.

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