Economic Nationalism

Definition

Economic nationalism is an economic policy that focuses on domestic production and consumption of goods and services, with the goal of achieving self-sufficiency and reducing reliance on foreign markets. It emphasizes the protection and promotion of a country's own industries, often through the use of tariffs, subsidies, and other trade barriers.

5 Must Know Facts For Your Next Test

1. Economic nationalism was a key feature of the Nullification Crisis, where South Carolina sought to nullify federal tariffs that it saw as favoring Northern industries over Southern agricultural interests.
2. During the Bank War, President Andrew Jackson's opposition to the Second Bank of the United States was driven in part by his belief that the bank favored the interests of the Northeast over the rest of the country.
3. The Tariff of Abominations, passed in 1828, was a protectionist measure that sparked the Nullification Crisis, as Southern states saw it as an example of economic nationalism that benefited the North at their expense.
4. The debate over the role of the federal government in promoting economic development and protecting domestic industries was a central feature of the political landscape in the early 19th century.
5. Economic nationalism was a key component of the Whig Party's 'American System' of internal improvements and tariffs, which sought to promote industrialization and economic development.

Review Questions

• Explain how economic nationalism was a factor in the Nullification Crisis.
  • Economic nationalism was a key driver of the Nullification Crisis, as the South saw the federal government's tariff policies as favoring Northern industrial interests over Southern agricultural interests. The Tariff of Abominations, passed in 1828, was seen by many Southerners as an example of economic nationalism that benefited the North at their expense. This led South Carolina to assert its right to nullify the tariff, setting off a constitutional crisis that threatened to tear the country apart.
• Describe the role of economic nationalism in the Bank War between President Andrew Jackson and the Second Bank of the United States.
  • President Andrew Jackson's opposition to the Second Bank of the United States was driven in part by his belief that the bank favored the interests of the Northeast over the rest of the country. Jackson saw the bank as a symbol of economic nationalism, as it was perceived to be controlled by the financial elite of the Northeast and to be using its power to promote their interests at the expense of the rest of the country. This led Jackson to veto the bank's charter and ultimately to its demise, as part of his broader efforts to limit the power of the federal government and promote the interests of the common people.
• Analyze how the debate over economic nationalism shaped the political landscape in the early 19th century.
  • The debate over the role of the federal government in promoting economic development and protecting domestic industries was a central feature of the political landscape in the early 19th century. The Whig Party's 'American System' of internal improvements and tariffs, which sought to promote industrialization and economic development, was a prime example of economic nationalism. Meanwhile, the Democratic Party, under the leadership of Andrew Jackson, was more skeptical of federal power and sought to limit the government's role in the economy. This debate over the appropriate role of the federal government in economic affairs was a key fault line that shaped the political landscape of the time, with the Nullification Crisis and the Bank War being two of the most prominent manifestations of this broader conflict.

Related terms

Protectionism: A policy of protecting domestic industries from foreign competition through the use of tariffs, quotas, and other trade barriers.

Mercantilism: An economic theory and practice that emphasizes the accumulation of wealth, usually in the form of gold and silver, through a positive trade balance and the regulation of commerce.

Infant Industry Argument: The argument that new domestic industries should be protected from foreign competition until they can become established and competitive.