ECONOMICS OF WAR
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Anonymous
Date added:
December 17, 2014
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Almost all manufactured goods had to be imported. Southerners therefore opposed high tariffs, or taxes that were placed on imported goods and increased the price of manufactured articles. The manufacturing economy of the North, on the other hand, demanded high tariffs to protect its own products from cheap foreign competition...
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There were few other sources of revenue. For example, neither personal nor corporate income taxes existed. The tariff paid for most improvements made by the federal government, such as roads, turnpikes, and canals. To keep tariffs low, the South preferred to do without these improvements.
The expanding Northwest Territory, which was made up of the present-day states of Ohio, Indiana, Illinois, Michigan, Wisconsin, and part of Minnesota, was far from the markets for its grain and cattle...
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