Working Paper: NBER ID: w9182
Authors: Joshua L. Rosenbloom
Abstract: During the first half of of the nineteenth century the United States emerged as a major producer of cotton textiles. This paper argues that the expansion of domestic textile production is best understood as a path- dependent process that was initiated by the proetction provided by the Embargo Act of 1807 and the War of 1812. This intial period of protected ended abruptly in 1815 with the conclusion of the war and the resumption of British imports, but the political climate had been irreversibly changed by the temporary expansion of the industry. After 1815 nascent manufacturers sought to protect the investments they had made by lobbying Congress. Their efforts had an important impact on the provisions concerning cotton textiles in the tariff bill of 1816, and during the 1820s manufacturers won increasingly strong protection, culminating in the passage of the Tariff of Abominations' in 1828.
Keywords: No keywords provided
JEL Codes: N6; N4
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Embargo Act of 1807 (N41) | initial expansion of textile manufacturing in the United States (N61) |
| War of 1812 (N42) | initial expansion of textile manufacturing in the United States (N61) |
| initial protection (Y20) | favorable environment for manufacturers (L60) |
| favorable environment for manufacturers (L60) | influence on tariff policy (F13) |
| influence on tariff policy (F13) | significant legislative changes such as the Tariff of 1816 and the Tariff of Abominations in 1828 (N11) |
| initial protection (Y20) | time for manufacturers to innovate (O39) |
| time for manufacturers to innovate (O39) | introduction of the power loom and vertically integrated production systems (L23) |
| introduction of the power loom and vertically integrated production systems (L23) | reduced costs and facilitated technological advancements (O39) |
| early development of the industry (O25) | formation of a labor force and a community of engineers (J21) |
| initial protective measures (Y20) | trajectory of American economic development in textiles (N61) |