The Differences between North and South

Economic Differences

Focus on Tariffs

Description

A tariff is a tax on foreign goods.  If another country can make an item for less money than it can be made in the United States, the government can place a tariff on that foreign item to make it more expensive. 

For example, if Great Britain could make cloth at a lower cost than American factories, the U.S. government could place a tariff, or tax, on British cloth. This would increase the cost of British cloth, making American cloth the cheapest.

The North supported tariffs because a high tariff helped their factories. Southern states opposed tariffs because a high tariff increased prices. Look at the above example. Without a tariff, cloth would be only $5.00 (although it would not be made in the USA). With the tariff, the cheapest cloth is $7.00.

The debate over tariffs was intense. Southerners did not want prices to increase while Northerners wanted to protect factories from foreign competition. The two sides could not agree. Watch the video below to gain a better understanding of the debate over tariffs.

 

The Tariff of Abominations by Ignite Learning 14

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