Tariffs, Blockades, and Inflation: The Economics of the Civil War

by Mark Thornton, Robert B. Ekelund Jr.

What role did economics play in leading the United States into the Civil War in the 1860s, and how did the war affect the economies of the North and the South? Tariffs, Blockades, and Inflation uses contemporary economic analyses such as supply and demand, modern market theory, and the economics of politics to interpret events of the Civil War. Simplifying the sometimes complex intricacies of the subject matter, Thornton and Ekelund have penned a nontechnical primer that is jargon-free and accessible. Tariffs, Blockades, and Inflation also takes a comprehensive approach to its topic. It offers a cohesive and a persuasive explanation of the how, what, and why behind the many factors at work on both sides of the contest. While most books only delve into a particular aspect of the war, this title effectively bridges the gap by offering an all-encompassing, yet relatively brief, introduction to the essential economics of the Civil War. This book starts out with a look at the reasons for the beginning of the Civil War, including explaining why the war began when it did. It then examines the economic realities in both the North and South. Also covered are the different financial strategies implemented by both the Union and the Confederacy to fund the war and the reasons behind what ultimately led to Southern defeat. Finally, the economic effect of Reconstruction is discussed, including the impact it had on the former slave population. Thornton and Ekelund have contributed an overdue examination of the Civil War that will impart to students a modern way to better comprehend the conflict. Tariffs, Blockades, and Inflation offers fresh, penetrating insights into this pivotal event in American history.

Genres: History, Economics, American, American Civil War

116 pages, Paperback

First published January 1, 2004

About the author

Mark Thornton is a Senior Fellow at the Mises Institute and the book review editor of the Quarterly Journal of Austrian Economics. He has authored seven books and is a frequent guest on national radio shows.

Reviews

[Jerel Wilmore · Rating 3 out of 5]

An uneven assessment of the American Civil War in economic terms. The chapters on blockade and inflation a good, but the authors' credibility is open to challenge when they play down slavery's role as the primary cause of the war and promote the idea that the Morrill Tariff contributed to the outbreak of war.

[Kyle Lilley · Rating 5 out of 5]

One of the best books on economics i've read, the language is clear enough for an undergraduate student to understand and the graphs provide good visual insight into the material of the book. Overall, a very enjoyable and quick read and goes into great historical detail that played into the economic consequences of the civil war.

[Mark · Rating 3 out of 5]

I had to give this book three, rather than four stars, from the standpoint of Civil War history... if I were rating it as a case study in applied economics, I'd probably rate it higher. Tarriffs, Blockades, and Inflation is written from very valuable and seldom-considered viewpoint, although a reader with little micro- and macro-economic background will have some slogging to do.

The two items I came away with as being of highest interest were the analysis into the economic pressures to import luxury goods rather than military cargoes or staples (short version: the blockade raised the price of importation on all goods, so that, relatively speaking, the cost of non-luxury goods rose more rapidly than the cost of luxury goods), and the Confederacy's policy of financing the war almost entirely by inflationary measures (i.e., printing more money, effectively devaluing the currency), whereas the Federal government had both more options open to it and a more realistic monetary policy.

Mark Ekelund, Jr. and Robert B. Thornton provide a substantial amount of evidence to indicate that, while the blockade may not have been capable of deciding the war on its own, it definitely applied significant pressure in an area where the Confederacy was decidedly vulnerable, and therefore materially aided the Union's war effort.

[IMPERIVM · Rating 4 out of 5]

Detailed economic history of the Civil War.