Continue Quote by John C. Calhoun
“Every increase of protective duties is necessarily followed, in the present condition of our country, by an expansion of the currency, which must continue to increase till the increased price of production, caused by the expansion, shall be equal to the duty imposed, when a new tariff will be required.”
About This Quote
Source Speech: Congressional Address, United States, 1840
Higher tariffs raise prices, prompting more money supply, which keeps expanding until costs match the duty, leading to further tariffs.
In simple terms: Tariffs cause price and money growth, eventually needing new tariffs.
Key Takeaway
Watch how taxes affect inflation.
Themes
economics
policy
inflation
Mood
analytical
concerned
Type
economic
historical
When to use this quote
- government budgeting
- business pricing
- consumer purchasing
- international trade
Key Concepts
tariff theory
price elasticity
monetary expansion
Questions to Reflect On
- How do modern tariffs compare?
- What policies can break this cycle?
A Different Perspective
Assumes constant demand and ignores external shocks.
