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What Really Caused The Nullification Crisis Of The South Carolina Economy

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During the late 1820s, John C. Calhoun believed that the tariff of 1816 was responsible for the decline of the South Carolina economy. Calhoun believed that if he developed the Theory of Nullification people in his home state would view him differently. The Theory of Nullification is the idea that states (unions) have the rights to void any law that is created by the government that is seen unconstitutional. States are the foundation of the Union, so they have the power to refuse any unconstitutional laws, and really states usually have the final say. What really caused the Nullification Crisis were many series of Protective Tariffs. Protective Tariffs are taxes placed on imported goods that are from foreign countries and their duty is to raise the price of foreign goods, making them less attractive to consumers protecting them from foreign competition such as; The Tariff of 1816 that placed a 20-25 percent tax on foreign goods, The Tariff of 1824 which placed a 35 percent duty on imported iron, wool, hemp, and cotton, finally the Tariff of 1828 which is also known as the Tariff of Abominations it was the third protective tariff and increased taxes to almost 50 percent. European factories during 1816 were far more experienced and with that great capability American factories couldn’t compare because their factories were new, and with that major difference in prices America couldn’t compare to the Europeans. The government then decided that they should make the first

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