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Fight Over Tariffs

Fight Over Tariffs. Jacksonian Era. What is a Tariff?. Definition: Tax on imports. Where were we importing the most goods from? Britain and France. How do Tariffs Impact the Economy?. Tariffs cause the prices of imported goods to increase.

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Fight Over Tariffs

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  1. Fight Over Tariffs Jacksonian Era

  2. What is a Tariff? • Definition: Tax on imports. • Where were we importing the most goods from? • Britain and France

  3. How do Tariffs Impact the Economy? • Tariffs cause the prices of imported goods to increase. • This encourages people to buy goods manufactured in the United States. • Local Manufacturers favor tariffs, while ordinary citizens oppose them. • Artificial inflation occurs • Inflation: The persistent increase in the prices of goods and services.

  4. The South Carolina Factor • Southern states such as S. Carolina had very few manufacturers. Instead their economy was based mainly on agriculture. • Tariffs hurt the general economy of Southern states like S. Carolina.

  5. Nullification • John C. Calhoun argued to nullify (cancel) the federal law that created these tariffs. • Or any law that a state considered unconstitutional • His argument… • States created the federal government, so states have the ultimate say.

  6. The Solution • Congress passed a lower tariff • Did not satisfy Calhoun • President Jackson and Congress agreed to gradually lower the tariff • S. Carolina accepted the new tariff • Jackson also pushed a bill that would allow him to use the military to enforce US laws.

  7. Is Nullification Constitutional? • NO… • It is the Judicial Branch’s job to decide whether laws are unconstitutional, not states. • States and the Federal government share powers. • The constitution states that when a federal law and a state law is in conflict, the federal law wins out.

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