Protective+Tariff+Hamilton+p7

Definition: A protective tariff is defined as either a tax or list of taxes that is paid on certain or all imported products. This policy was imposed in order to protect domestic producers of the smaller industries as well as to generate a small revenue for the national government. Hamilton’s tariff was about 8% on the value of dutiable imports. This policy was sent and passed by Congress before Hamilton was sworn in. This policy generally protected manufacturers of the Northern States, and raised costs for manufacturers of the Southern states. The Policy also favored taxing on manufactured goods, but not on the materials used to make them.

Hamilton's Viewpoint: To Hamilton, a major way the government was going to pay off the debt it inherited from the individual states was to institute the Tariff of 1789, which put an 8% tax on imports to the U.S. Hamilton believed that by discouraging the consumption of foriegn goods, the sales of products manufactured in the Northern U.S. would increase. In addition to this, the young America would recieve money if anyone wanted to buy imported products, which would go towards the national debt. Another reason for passing the law was to protect emerging "infant" industries in America by discouraging foriegn trade. He knew that the Industrial revolution would eventually reach America, and we needed sustainable industries that could thrive on it. What the new government needs now is money, and these Tariffs would provide immediate resources for the government AND be a wise investment in the future. If these budding industries hadn't been protected back in 1789, then the Industrial Revolution wouldn't have been as huge as it was in America. Hamilton knew very well of the Industrial Revolution that was sweeping through Great Britain and Europe, and with it came a new pressure to buy these foriegn products. If left unchecked, European economies would have such a monopoly on products in America that they could put excessive taxes on whatever they want (Tea Act, anyone?). Tariffs and rebates for re-exported goods would keep American money in America, and boost our own economy to match France's and Great Britain's. Self reliance on American resources and manufacturing will push Americans into their own Industrial Revolution, one that will require U.S. industries to be self sustaining. With less dependance on imports, America will see an era of invention and entrepreneurship that will solidify our country as a world power. America has the most natural resources out of any country in the world, and it's about time that we utilize them with our own manufacturing, and not Britain's. With each state working seperately to fund themselves and not working towards a common goal, America will never prosper. The National Bank, army, and other national works would never get funding if there were no tariffs. You cannot hope to prosper as a whole if each state is kept in the dark, and we all work with blinders on.

-How could America grow if already stable businesses from France and Britain are ousting emerging American Businesses?

-Right now the strongest and most profitable businesses are foriegn, as they are going through their Industrial Revolution. How will that change in the future without Tariffs?

-Can you think of a better, fairer way of paying off foriegn and domestic debts? Remember that state legislatures (mainly inthe South) might vote to NOT pay off their individual debts, and nothing would get done.

-What's stopping Europe from having a monopoly on American goods in the near future if we don't pass this tariff?

-Why shouldn't factories stay in the North, where it is logistically smarter to keep them near the rivers (Pittsburg) and iron ore mines?

-How is our country supposed to compete with other countries if we do not produce and export our own products enough to support our own economy?