Chapter 2: The Depression of the 1780s and the Banking Struggle
It has been alleged—from that day to this—that the depression which hit the United States, especially the commercial cities, was caused by “excessive” imports by Americans beginning in 1783. But this kind of pseudo-explanation merely betrays ignorance of economics: a boom in imports reflects voluntary choices and economic improvement by consumers, and this expression of choice can scarcely be the cause of general depression. In short, an improved standard of living for the bulk of consumers reflects improvement and not depression.
Chapter 3: The Drive for State and Federal Protective Tariffs
Every depression generates a clamor among many groups for special privileges at the expense of the rest of society—and the American depression that struck in 1784–1785 was no exception. If excess imports were the culprit, then voluntary economizing could help matters, and the press was filled with silly fulminations against ladies wearing imported finery. Less foolish and more pernicious was a drive by the beleaguered and often sub-marginal artisans and manufacturers for the special privilege of protective tariffs.
Chapter 1: Changes in Foreign Trade
After peace came in 1783, the new republic faced a two-fold economic adjustment: to peacetime from the artificial production and trade patterns during the war, and to a far different trading picture than had existed before the war. The largest change between the two eras of peace was the shift in trading patterns resulting from independence.
Adherents of modern monetary theory (MMT) argue that money is “a creature of the state,” as the economist Abba Lerner famously put it back in 1947. As they see it, money initially comes into existence as a result of government spending and derives its value from the fact that it can be used to discharge the public’s obligations to the government.
After insisting for weeks that leaving one’s home or gathering in groups of any size was “irresponsible” and a “slap in the face” to medical professionals, doctors and nurses completely changed their minds. The prohibitionist view toward gatherings was specifically applied to those who protested the stay-at-home orders.
Quotations
Liberty, the greatest of all earthly blessings—give us that precious jewel, and you may take every thing else! But I am fearful I have lived long enough to become an old-fashioned fellow.... Twenty-three years ago was I supposed a traitor to my country? I was then said to be the bane of sedition, because I supported the rights of my country. I may be thought suspicious when I say our privileges and rights are in danger.... Guard with jealous attention the public liberty. Suspect every one who approaches that jewel. Unfortunately, nothing will preserve it but downright force.
Dedication
The Mises Institute dedicates this volume to all of its generous Supporters and wishes to thank these, in particular:
BENEFACTORS
Anonymous
Remy Demarest
Michael H. Denyer, MD
Prof. Dr. Hans-Hermann Hoppe and Dr. A. Gülçin Imre Hoppe
James E. Kluttz, in memory of Earle C. and Mary Katharine Fisher Kluttz
Mr. and Mrs. Mark Stephens Murrah, in honor of Lew Rockwell
William S. Ramagosa, Jr.
Mr. and Mrs. Gary J. Turpanjian
PATRONS
