IEA Podcast

The REAL Reason America Became an Economic Superpower (It's Not Tariffs) | IEA History


Listen Later

Join IEA Managing Editor Daniel Freeman as he explores how trade tariffs shaped America with Professor Alexander Klein. In 1870, the US had a massive 45% average tariff on imported goods - compared to just 2% today. Professor Klein breaks down why the US adopted such high tariffs after the Civil War, and what this history tells us about current debates around trade protection. From intense lobbying battles between Northern and Southern states to surprising findings about productivity, this conversation challenges common assumptions about America's economic development.

In this wide-ranging discussion, Freeman and Klein examine how even successful American companies pushed for trade protection, using the argument "other industries get tariffs, why shouldn't we?" Klein explains why high tariffs actually reduced productivity across most industries, despite creating more jobs - a tradeoff that's still relevant in today's policy debates. They explore how America's huge domestic market, natural resources, and waves of immigration were more important to its industrial success than trade barriers.

As politicians today call for higher tariffs to protect American jobs, this historical perspective offers important lessons. Klein's research shows how trade protection can become politically addictive, even when it doesn't help economic growth. He also highlights the dangers of rising trade barriers during economic crises, drawing parallels between the Great Depression and current debates about globalization and industrial policy.



This is a public episode. If you'd like to discuss this with other subscribers or get access to bonus episodes, visit insider.iea.org.uk/subscribe
...more
View all episodesView all episodes
Download on the App Store

IEA PodcastBy Institute of Economic Affairs

  • 5
  • 5
  • 5
  • 5
  • 5

5

13 ratings


More shows like IEA Podcast

View all
Best of the Spectator by The Spectator

Best of the Spectator

183 Listeners

Coffee House Shots by The Spectator

Coffee House Shots

179 Listeners

Politics Unpacked by The Times

Politics Unpacked

117 Listeners

Americano by The Spectator

Americano

259 Listeners

The spiked podcast by The spiked podcast

The spiked podcast

215 Listeners

The Brendan O'Neill Show by The Brendan O'Neill Show

The Brendan O'Neill Show

363 Listeners

The Edition by The Spectator

The Edition

49 Listeners

Last Orders - a spiked podcast by Last Orders - a spiked podcast

Last Orders - a spiked podcast

58 Listeners

New Culture Forum by New Culture Forum

New Culture Forum

90 Listeners

The Daily T by The Telegraph

The Daily T

124 Listeners

IFS Zooms In: The Economy by Institute for Fiscal Studies

IFS Zooms In: The Economy

5 Listeners

Planet Normal by The Telegraph

Planet Normal

184 Listeners

Chopper's Political Podcast | GB News by GB News

Chopper's Political Podcast | GB News

9 Listeners

Not Another One by Steve Richards, Miranda Green, Tim Montgomerie and Iain Martin

Not Another One

24 Listeners

The Sceptic by The Daily Sceptic

The Sceptic

2 Listeners