Tariffs: Why Were They Necessary?

Tariffs were taxes put on the South (on European goods) to keep them from buying from Europe. The South hated tariffs because (1.) they hated the north, and (2.) they hated getting taxed. But they were necessary, collecting $53.2 million in 1860, 1 year before the Civil War started. Why were they necessary? Tariffs kept the economy going, they increased work wages, and they helped industries stay alive.
Tariffs helped keep the economy going. When the South would buy from Europe, the North would get no money. This was a problem, as to buy only from Europe was to let the North, who was in control of banks and main government control, lack money. Tariffs made it so that the North still got their money that would keep the North from going bankrupt.
According to the National Bureau of Economic Research, wages per hour rose by up to $5 dollars after tariffs were in place. Keep in mind that $1 in 1860 is equal to $27.48 in 2016. The NBER chart is shown below:

State
1830
1850
1860
South Carolina
$7.00
$7.72
$11.37
North Carolina
$6.00
$7.21
$10.57
Virginia
$6.00
$8.43
$11.43
Alabama
$9.00
$9.62
$12.41
Georgia
$12.00
$9.03
$11.95
Louisiana
--
$12.80
$17.00
Mississippi
$10.00
$11.00
$16.66
Texas
--
$12.00
$16.02 …show more content…
If a domestic segment or industry is struggling to compete against international competitors, the government may use tariffs to discourage consumption of imports and encourage consumption of domestic goods in hopes of supporting associated job growth.” This fits the North’s taxes on European goods. If it hadn’t been put in place, the North may have run the risk of running low on their own money, which would affect the