February 10, 2005
20050203 Econ 113 Lecture: Industrializing America Before the Civil War
Megasthenes: the coming of cotton to the Mediterranean...
Format of the first midterm exam...
David Ricardo: Why didn't the U.S. become one big unindustralized Canada?
Answer: the tariff
Could the tariff have been good for the country?
Answer--yes, if the infant industry argument holds.
What is the infant industry argument? There has to be some benefit--external to the firm and to the worker--from production. Future productivity has to be positively influenced by past production in order to make it beneficial in the long run to upset the Ricardian pattern of comparative advantage.
The infant industry argument is plausible, but not certain, for the case of U.S. textile manufacture.
Even so, it's not good for the cotton-exporting tariff-paying south.
The history of the cotton textile business: Samuel Slater, Francis Cabot Lowell, Lowell Massachusetts, et cetera...
Peter Temin's article: the American system
The Crystal Palace exhibition
What is special about American industry
The "American System"
Resource-using technological style.
Consequences for post-Civil War industrialization...
Posted by DeLong at February 10, 2005 12:31 PM