Protective+Tariff+P7

 The Protective Tariff of 1789: Congress adopted this tariff on July 4, 1789 to raise revenues on foreign imports for the new government and placing taxes the imports from foreign sources to encourage domestic productions. This would make the U.S. production costs cheaper than the foreign imports so there is less competition with foreign goods within the states. The protective tariff provided a security for mostly the Northern States' manufacturing to protect domestic production. This tariff was also known as the Hamilton Tariff because he supported it while Jefferson was against it. The South does not have much of a profit from this tariff since they are forced to buy from the North, which is why Jefferson does not favor it.

Being born and raised in Virginia, Thomas Jefferson’s parents taught him that he was equal to everyone else. When he took his seat as the Secretary of State, he brought those beliefs with him. He soon became known as the spokesperson for the common man. Thomas Jefferson opposed the protective tariff because he believed it hurt the “little guy”, the little guy being the farmers and the merchants. The protective tariff increased the prices on imports which increased the price of domestic merchandise. The south disliked the tariffs because it affected their manufacturing because it cost more to export. Before the tariff, the south exported to foreign nations. Now the south imports and exports from the north. Therefore the North favored the tariffs because it bettered their economy. For example, the south produced cotton. If the protective tariffs were put in place, it would cost too much to export the cotton. So now the South has to export the cotton to the manufactures in the North. Once the product is made, the South would buy it back for a higher price. Thomas Jefferson felt that it was his job to look out for the common man and not allow the protective tariff act to pass.

Questions: **Is the South's encomony not important to the new government of the colonies? What will the government do when the South's debt forces the overall debt to an all time low? Is it worth angering an economically powerful area?**