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Compromises, Tariffs, War, and Their Heritage
Compromises are not necessarily a permanent solution.
It’s time for a little history.
Andrew Jackson, whom President Trump admires, was a supporter of tariffs, the government’s major source of revenue in those pre-income tax days, but he knew how to compromise, playing both sides of an issue.
In 1832, anti-tariff’ South Carolina, an exporter of cotton with little manufacturing and where imports played a big role, announced that it would militarily resist the collection of tariffs, a process known as ‘Nullification’ (of a Federal law). President Jackson and Congress then responded by threatening to send in the United States Army to force their collection.
Congressional leaders rushed to negotiate a compromise in 1833 whereby both South Carolina and the President backed off from aiming guns at one another, withdrawing the warlike legislation originally passed both in Washington and in Charleston.
Jackson and Congress ended up reducing the tariffs but they remained a political weapon and still are one today, potentially damaging to the nation if used by those with no understanding of how they work. The Congressional pressure to craft a compromise on tariffs in 1833 could not happen today because both Houses of Congress have given up their autonomy in exchange for the votes of Trump’s MAGA loyalists.
Over the next three decades after Jackson’s compromise on tariffs, the concept of ‘Nullification’ did not disappear as tariffs increased and were joined by fierce arguments and failing compromises regarding the expansion of slavery. More States than South Carolina were by then involved, as the concept of ‘Nullification’ led to ‘Secession’ and the war between the North and the South.
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John C. Calhoun, proponent of 'Nullification' |
South Carolina’s Senator John Calhoun, who also served as Vice President for John Quincy Adams and during Andrew Jackson’s first term, spearheaded the cause of States Rights and slavery, and fought tariffs during his career. Eventually a frequent foe of Jackson, he died in 1850 but not before working with Henry Clay to bring about the Compromise of 1850, which postponed the Civil War by eleven years. Clemson University sits on Calhoun’s estate, donated by his heirs.
The importance of Kentucky Senator Henry Clay, also instrumental in the ultimately unsuccessful compromises of that era, cannot be minimized. He is famous for saying ‘I’d rather be right than President,’ (He ran and lost three times); Henry Clay will be addressed in a future Jackspotpourri.
The Civil War was about how far the rights of individual States extended, with owning slaves as an inherent property right being the salient issue. Back in 1789, for the sake of creating and passing our Constitution, the slavery question had been avoided by the Founding Fathers. By the middle of the Nineteenth century, however, times had changed; slavery had been banned in most of Europe, including Great Britain, tariffs were again rising , and both Andrew Jackson and that 1833 tariff compromise were dead.
Although that compromise and others were not permanent solutions, they were still useful in that they provided time to somehow try to avoid a war that was looming on the horizon, even back in 1832 and 1833. But all it did was to postpone it.
The North was infuriated by the 1857 Dred Scott decision, which allowed a former slave to be returned from Wisconsin to his former owner in Missouri, and the Kansas-Nebraska Act opened the West to slavery. The die had been cast and the North and the South were ready to fight for their beliefs, and no longer did they focus on tariffs, generally popular in the North, less so in the South. The rights of States and slavery, intertwined issues, were what the War would be about.
In 1861, South Carolina’s guns finally fired on Fort Sumter in Charleston harbor, starting a war some say continues today in other, non-military forms, touching on those same issues.
After all, isn’t the President’s use of tariffs as a supposed weapon of coercion against foreign nations, ultimately burdening Americans with higher prices to enable importers to pay ‘tariffs’ to our government? Sounds like a thinly disguised sales tax on consumers who purchase imported items to me.
And aren’t his attacks on ‘Diversity, Equity, and Inclusion’ related to the heritage of slavery? Historically, Trump stands with those who brought post-Civil War ‘Reconstruction’ to an end, welcoming the ‘gilded’ age of the unregulated ‘Robber Barons’ and ‘Jim Crow’ State laws in 1877 when the last Federal troops were withdrawn from the South.
His praise of President McKinley, who did nothing praiseworthy, represents this. Things change and also remain the same.
JL
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The Continuing Conflict – Federalism vs States Rights
Throughout most of the first century of the history of the United States of America, the conflict between the power of the Federal government and the rights of the supposedly ‘united’ individual States centered on tariff policies, the favorite revenue-raising tool of Alexander Hamilton.
In 1862, to help finance the Civil War, Abraham Lincoln created the IRS and the income tax which Congress approved. This eventually moved the focus of those who disliked central Federal government from opposition to tariffs to opposition to taxes. Both are still with us, although the emphasis is now on the latter, while States Rights themselves remain an issue presently more related to voting, environmental, and health care issues.
JL
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What MAGA Really Means
In disbelief, the other day I heard our now pro-tariff President mumble that the income tax was mysteriously started in 1913 to replace income derived from tariffs, apparently unaware that Abraham Lincoln started the IRS in 1862 to finance the Civil War. He must have cut class the days they taught that at Wharton and New York Military Academy.
And this past week, I saw a poster at an anti-Trump rally declaring that Morons Are Governing America. Tee Shirts and caps are on the market with that slogan as well.
That is absolutely true.
President Trump is their drum major, leading their parade. That slogan well describes the proponents of tariffs who are ignorant of how they work and who is left to ultimately pay for them. It takes a little thinking to understand that; just scratching the surface is not enough, once you’re out of junior high school. (Did Trump cut classes there too?)
Worse is the fact that Americans voted these morons into office, misinformed and misled by deceitful media, protected by the First Amendment.
JL
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At the Edge of the Abyss
Economist Paul Krugman writes about how we are at the brink of economic disaster because of the President’s tariffs. CLICK HERE or copy and paste https://paulkrugman.substack.com/p/the-cost-of-chaos-this-is-getting on your browser line. You might not understand all that he writes but give it a shot. After all, he is a Nobel Prize winner.
What it comes down to, I think, is that bondholders seek stability, and if that is absent due to stock market gyrations caused by tariffs or anything else, they prefer having cash on hand rather than a future promise to pay, which is what a bond is. So they will sell, sell, and sell … until there aren’t any buyers left, and that can push the bond market over the brink into the abyss, eliminating the money sources necessary for growth and dragging the entire economy behind it. Huh?
JL
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Today's 'Biggie'
For the past few postings of Jackspotpourri, I've been dancing around what can be done about the unqualified, shallow, bigot we have in the White House. I've also thrown around the words 'inconceivable,' 'possible,' and 'necessary.' But face it, we are now precisely at the point where the ‘inconceivable’ looks to be a ‘possibility’ if not a ‘necessity’ in order to save the nation from self-destruction. Elaborating on that leads nowhere but to Donald Trump. It is time to put it all together, to fish or cut bait. So here goes!
Let me repeat that, but this time, more SPECIFICALLY, at last:
The ‘inconceivable possibility or necessity’ that I’ve been writing about consists of seriously thinking about PREMATURELY ENDING THE PRESIDENCY OF DONALD TRUMP as soon as possible, primarily because of his disastrous tariff policy, but also because of his disregard of rights guaranteed by the Constitution and existing legislation, our goal being saving the United States of America from its self-destruction at his hands, but let’s make it very, very, clear, it is something to be accomplished in a legal and Constitutional manner.
Now that our goal has been stated, a big step forward, stay tuned to Jackspotpourri for some ideas about where we go from here! It won't be easy because Trump has sixty years of feinting, lying, double-talking, and reversing his own positions so that he comes up on top in negotiations. He is one person with whom never to negotiate. Bankruptcies, expensive law suits forced on those with whom he negotiates, and decades of not paying bills are all in his bag of tricks. As a politician he is no different.
Today's posting started off talking about 'compromises.' Going down that road with him plays into his hands. But we now know what our objective is and that is a big step forward. Next time, we'll get into the method of arriving there. successfully.
JL
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Housekeeping on Jackspotpourri
Your comments on this ‘blog’ would be appreciated. My Email address is jacklippman18@gmail.com.
Sources of Information on Jackspotpourri: The sources of information used by Jackspotpourri include a delivered daily ‘paper’ newspaper (currently the Palm Beach Post, a Gannett publication) and what appears in my daily email. Be aware that when I open that email, I take these steps.
1. I quickly scan the sources of the dozen or two emails I still get each day at my old email address to see from where they are being sent. Without reading 99% of them, I usually immediately delete them.
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Besides email, my other source of information is the Google search engine where I can look up any subject I want. Lately, these search results have been headed by a very generalized summary clearly labeled as being developed by AI (Artificial Intelligence). I do not use such summaries in preparing Jackspotpourri because I am in the dark about the techniques used and possible sources AI has mined to develop them. Sources with their origin clearly identified still follow, and these are what I use in composing Jackspotpourri postings. (In doing searches on Google, I have found that these AI summaries can sometimes … but not always … be avoided by saying so in your search. For example, instead of searching for ‘FDR’s New Deal,’ I might search for ‘FDR’s New Deal – No AI.’ This is a work in progress.)
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JL
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