Changes

== Tariffs ==

== Tariffs ==

Throughout the late 1700s and all of the 1800s the federal (national) government raised money for its operations primarily through tariffs, which are taxes on imports.  When a foreign country sent goods to be sold in the United States, our federal government would impose a tariff (tax) on those goods.  The more goods that were imported, the more revenue there would be from the tariffs.  Tariffs were ultimately replaced in the 1900s by the income tax on individuals as the primary means for supporting our government, because President Woodrow Wilson (1913-1921) thought tariffs caused conflicts and wars between nations.

Throughout the late 1700s and all of the 1800s the federal (national) government raised money for its operations primarily through tariffs, which are taxes on imports.  When a foreign country sent goods to be sold in the United States, our federal government would impose a tariff (tax) on those goods.  The more goods that were imported, the more revenue there would be from the tariffs.  Tariffs were ultimately replaced in the 1900s by the income tax on individuals as the primary means for supporting our government, because President Woodrow Wilson (1913-1921) thought tariffs caused conflicts and wars between nations.

 

Tariffs helped protect the domestic (United States) businesses by increasing the costs of the foreign competition, and thus are called "protective tariffs."  If you were to own a factory that produces computers, and if there were a tariff imposing a $100 tax on all imported computers, then you would be thrilled because you could undersell the competition and make more profits for your company.  The North liked tariffs because the tariffs protected their manufacturing companies against competition by foreign manufacturers; the South disliked tariffs because it caused their cotton farmers to pay more for equipment, and because foreign nations would retaliate by imposing similar tariffs on the cotton exported by the South, which reduced the southern farmers' revenue.

Tariffs helped protect the domestic (United States) businesses by increasing the costs of the foreign competition, and thus are called "protective tariffs."  If you were to own a factory that produces computers, and if there were a tariff imposing a $100 tax on all imported computers, then you would be thrilled because you could undersell the competition and make more profits for your company.  The North liked tariffs because the tariffs protected their manufacturing companies against competition by foreign manufacturers; the South disliked tariffs because it caused their cotton farmers to pay more for equipment, and because foreign nations would retaliate by imposing similar tariffs on the cotton exported by the South, which reduced the southern farmers' revenue.