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Essay / The American reaction to Richard Cobden: an economy of...
Introduction Although Anglo-American relations are not currently hostile, they have not always been. This article will explore the free trade beliefs of Richard Cobden and show that Americans who rejected his ideas did so out of ignorance and fear. The article will begin with a description of the background and beliefs of Cobden, then move on to an analysis of American Anglophobia and Anglomania as well as governmental responses to Cobden. Background Trade liberalization in Britain marked an era of intense change in the European economy. The document that triggered this change was the Cobden-Chevalier Treaty of 1860. Anglo-French commercial antagonisms had reached an agonizing level for both countries, beginning with the Congress of Vienna and culminating with the introduction and eventual repeal of the Acts on corn. For more than 30 years, Britain engaged France in tariff wars that only limited the two countries' trade potential. Accominotti and Flandreau (2008) describe this as a “period of widespread protectionism” (p. 152). The economic concept of protectionism dates back to Adam Smith's idea of comparative and absolute advantage. The country with the capacity to produce the same quantity of a good or service with fewer resources than another country has the absolute advantage. However, if the other country has a lower opportunity cost to produce the same good or service, it has a comparative advantage. Smith argued that "if a foreign country can supply us with a product at a cheaper price than we can make ourselves, it is better to buy it from them using some of the products of our own industry in a manner which gives us some advantage" (Smith, 1904, IV.2.12).The beliefs of Richard CobdenIn response to the Corn Laws, Richard Cobden...... middle of article....... ( 2013). Foreign Relations in the Gilded Age: A British Free Trade Conspiracy? Diplomatic History, 37(2). Smith, A. (1904). An Inquiry into the Nature and Causes of the Wealth of Nations (5th ed.). (e. Edwin Cannan, ed.) London: Methuen & Co., Ltd. Stanwood, E. (1967). American Tariff Controversies in the 19th Century (Vol. II). New York: Russell & Russell. Stringham, E.P. (2004). Trade, markets and peace. Independent Review, 9(1), 105-116. The Cobden Club held its inaugural meeting at the Star. (1866, July 28). Spectator archives. Great Britain. Retrieved March 28, 2014, from http://archive.spectator.co.uk/article/28th-july-1866/3/the-cobden-club-held-its-inaugural-meeting-at-the-Tuffnell, S. (2011, March). "Uncle Sam must be sacrificed": Anglophobia in late 19th-century politics and culture. 19th century American history, 12(1), 77-99.