The McKinley Doctrine
The McKinley Doctrine, named after William McKinley, the 25th President of the United States, was a set of foreign and economic policies that shaped American strategy in the late 19th and early 20th centuries. This doctrine consisted of three main pillars.
Protective Tariffs: McKinley, known as the "Napoleon of Protection," implemented high tariffs on imports to protect domestic industries and workers from foreign competition. The Tariff Act of 1890, also known as the McKinley Tariff, raised average duties on imports from 38% to 49.5%.
Overseas Expansion: McKinley pursued an imperialistic foreign policy, leading to the acquisition of territories such as Hawaii, Cuba, and the Philippines. This expansionism was justified as a means to secure naval stations, control strategic locations, and assert American influence in the Western Hemisphere.
Safeguarding National Independence: The doctrine emphasized the importance of maintaining America's economic and political sovereignty while expanding its global influence.
McKinley's approach to foreign policy was characterized by a willingness to intervene in foreign affairs, particularly in the Western Hemisphere. He invoked the Monroe Doctrine when retaliating against Spain's colonization of Cuba, which ultimately led to the Spanish-American War. This conflict resulted in the United States gaining control over several former Spanish colonies and establishing itself as a world power.
The McKinley Doctrine also had significant domestic implications. It promoted a strong link between industrial protectionism and colonial expansionism, viewing trade rivals with wariness and less-developed countries with paternalistic attitudes. This approach shaped American foreign policy well into the 20th century, influencing subsequent administrations and contributing to the nation's rise as a global superpower.
https://www.perplexity.ai/search/02057ddd-d08d-4040-a4f0-3797590f43e1
The Tariff Act of 1890
The Tariff Act of 1890, commonly known as the McKinley Tariff, was a significant piece of legislation in United States history that dramatically increased import duties. Signed into law on October 1, 1890, the act was framed by Representative William McKinley and raised the average tariff on imports to nearly 50%, one of the highest levels in U.S. history.
Key Features
Increased Duties: The tariff raised average duties across all imports from 38% to 49.5%.
Protectionist Measures: The act was designed to protect domestic industries and workers from foreign competition, aligning with the Republican platform.
Eliminated Tariffs: The act removed tariffs on sugar, molasses, tea, coffee, and hides.
Reciprocity Provision: It authorized the President to reinstate tariffs on certain items if other countries treated U.S. exports unfairly.
Specific Industry Impacts
Tin-plates: The duty on tin-plates was raised from 30% to 70%, aiming to stimulate the infant domestic tin-plate industry.
Wool: The act implemented exceedingly protectionist provisions for wool and woolen goods, subjecting almost all woolen goods to the maximum duty rate.
Economic and Political Consequences
Price Increases: Americans suffered a steep increase in prices of goods, leading to widespread criticism.
Political Backlash: In the 1890 election, Republicans lost their majority in the House, with their seats reduced from 171 to 88.
Revenue Impact: Despite higher tariff rates, U.S. customs revenue actually fell in the first year due to the removal of the sugar duty.
Industry Growth: Some industries, like tinplate manufacturing, saw significant growth under the tariff's protection.
International Reaction: The tariff was poorly received abroad, with some countries in the British Empire considering tariff retaliation.
The McKinley Tariff was eventually replaced by the Wilson-Gorman Tariff Act in 1894, which lowered tariff rates. The act remains a significant example of protectionist trade policy in U.S. history and its potential economic and political ramifications.
https://www.perplexity.ai/search/ad9e527e-a923-45d8-b4bd-209fa9fdf9b2
Wilson-Gorman Tariff Act in 1894
The Wilson-Gorman Tariff Act of 1894, also known as the Revenue Act or Income Tax Act of 1894, was a significant piece of legislation passed by the United States Congress on August 27, 1894. This act aimed to reduce tariff rates and introduce a federal income tax, marking an important shift in U.S. fiscal policy.
Key features of the Wilson-Gorman Tariff Act included:
Tariff reduction: The act slightly lowered tariff rates from those set by the 1890 McKinley Tariff. However, the final version's reductions were less substantial than initially proposed due to numerous amendments in the Senate.
Income tax: It imposed a 2% tax on personal incomes over $4,000 (equivalent to about $100,000 in 2018). This was the first peacetime income tax in U.S. history and affected less than 10% of households.
Corporate tax: A 2% tax was also levied on corporate income above operating expenses.
The act faced several challenges and controversies:
Political maneuvering: While the House version significantly lowered tariffs, the Senate added over 600 amendments that nullified many reforms and raised rates again, largely due to the influence of special interests.
Presidential response: President Grover Cleveland, who had campaigned on lowering tariffs, was disappointed with the final version. He allowed it to become law without his signature, considering it better than nothing.
Constitutional challenge: Less than a year after its passage, the Supreme Court ruled portions of the income tax unconstitutional in Pollock v. Farmers' Loan & Trust Co..
The Wilson-Gorman Tariff Act had several significant impacts:
Economic effects: It failed to achieve its economic goals, potentially worsening the ongoing economic depression.
Political consequences: The act contributed to tensions that would later lead to the Spanish-American War in 1898.
Long-term influence: Despite its short-term failure, the act paved the way for future income tax legislation, ultimately leading to the passage of the 16th Amendment in 1913, which established the constitutional basis for the modern federal income tax system.
https://www.perplexity.ai/search/d28fee86-06b1-4da2-b574-9df2498c4d0d
tags: tariff, trade, Canada, European Union, china