Two Trade Wars: 1807 and 2018
The Results of 1807
The decision turned into the worst disaster of the Jefferson presidency. The trade war of 1807 led to the loss of lucrative trading routes, the breakdown of mutually beneficial trading relationships, a revolt among Jefferson’s electoral base, a victory for the Federalist Party, the rise of black market trading activity, a huge rise in the price of imported goods and a fall in the price of exports, and huge popularity blow against the Jefferson presidency, which was supposed to be about reducing government’s role, not cutting off business opportunities for the American people.
The entire trade-war effort failed and ended up undermining both American prosperity and the Jefferson presidency.
Irwin writes (“The Welfare Cost of Autarky: Evidence from the Jeffersonian Trade Embargo, 1807–09”):
https://www.aier.org/ American Institute for Economic Research
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