Fact Check: “You know our country was the strongest from 1870 to 1913," because we had a tariff based economy

The Claim: "You know our country was the strongest from 1870 to 1913," because we had a tariff-based economy

Introduction

The assertion that the United States was at its economic peak between 1870 and 1913 due to a tariff-based economy is a claim that invites scrutiny. This period, often referred to as the Gilded Age, is characterized by rapid industrialization, urbanization, and economic growth. However, the relationship between tariffs and economic strength during this time is complex and contentious. This article will explore the available evidence and perspectives surrounding this claim.

What We Know

1. Economic Growth: The U.S. economy did experience significant growth during the period from 1870 to 1913, with real GDP increasing at an annual rate of approximately 3.94% and GDP per capita growing nearly 2% annually 6. This growth coincided with high tariff rates, which were a major source of federal revenue until the introduction of the income tax in 1913 7.

2. Tariff Rates: Tariffs were indeed a critical component of U.S. economic policy during this period. They accounted for a substantial portion of federal revenue, ranging from 50% to 90% 7. However, the effectiveness of tariffs in fostering economic growth is debated among economists.

3. Correlation vs. Causation: While some sources suggest a correlation between high tariffs and economic growth, others argue that the growth was not solely attributable to tariffs. For instance, a study indicates that while tariffs were high, the economic expansion was also influenced by other factors such as technological advancements and an expanding labor force 8.

4. Historical Context: The late 19th century was marked by significant economic fluctuations, including recessions and periods of economic distress. For example, the Panic of 1893 led to a severe economic depression, challenging the narrative of uninterrupted growth 5.

5. Debate Among Scholars: The role of tariffs in U.S. economic development is still a subject of debate. Some scholars argue that tariffs protected nascent industries and contributed to industrial growth, while others contend that they led to inefficiencies and did not significantly enhance overall wealth 10.

Analysis

The claim that the U.S. was "the strongest" during the specified period due to a tariff-based economy is supported by some historical data but is also met with skepticism from various economic analyses.

• Source Reliability:

  • The Wikipedia entry on the history of tariffs provides a broad overview but lacks depth in empirical analysis, making it less reliable for nuanced economic discussions 1.
  • The Forbes articles 37 present a perspective that supports the claim but may exhibit bias, as they are published by a business-oriented outlet that may favor free-market narratives.
  • The academic article from ScienceDirect 2 offers a more rigorous analysis of tariff impacts but focuses on a broader international context, which may dilute the specific U.S. focus of the claim.
  • The American Enterprise Institute (AEI) article 8 critiques the notion that tariffs were beneficial, suggesting a potential bias against protectionist policies, which is important to consider when evaluating its claims.

• Methodological Concerns: Many studies rely on historical economic data, which can be interpreted in various ways. The methodologies used to correlate tariffs with economic growth often do not account for other influential factors, such as global economic conditions or domestic policy changes unrelated to tariffs.

• Conflicting Perspectives: While some sources argue that tariffs were essential for economic growth, others highlight that the same period saw significant economic challenges, suggesting that attributing economic strength solely to tariffs may be an oversimplification 68.

Conclusion

Verdict: Partially True

The claim that the United States was the strongest from 1870 to 1913 due to a tariff-based economy is partially true. Evidence indicates that the U.S. economy did experience significant growth during this period, coinciding with high tariff rates that contributed to federal revenue. However, the relationship between tariffs and economic strength is not straightforward. While some scholars argue that tariffs played a protective role for emerging industries, others contend that the overall economic growth was influenced by multiple factors, including technological advancements and labor force expansion.

It is important to acknowledge the limitations of the available evidence. The methodologies used in studies examining the impact of tariffs often do not fully account for other variables that could affect economic growth. Additionally, the historical context includes significant economic fluctuations, including recessions, which complicate the narrative of consistent strength attributed solely to tariffs.

Readers are encouraged to critically evaluate this information and consider the complexities involved in historical economic analysis. The interplay of tariffs and economic performance during this period remains a topic of scholarly debate, underscoring the need for a nuanced understanding of historical claims.

Sources

1. History of tariffs in the United States. (n.d.). Retrieved from Wikipedia
2. Recovery from financial crises in peripheral economies, 1870–1913. (2020). Retrieved from ScienceDirect
3. When Tariffs Worked. (2018). Retrieved from Forbes
4. The Great U.S. Economic Expansion of 1870-1913. (n.d.). Retrieved from New World Economics
5. Trump has touted Gilded Age tariffs, an era which saw ... (2025). Retrieved from PBS
6. High tariffs didn’t make the U.S. rich in the 19th century. (n.d.). Retrieved from Economic Forces
7. The Surprising History Of Tariffs And Their Role In U.S. Economic Policy. (2025). Retrieved from Forbes
8. How Did America Get Rich to Begin With? It Sure Wasn't Because ... (n.d.). Retrieved from AEI
9. Interpreting the Tariff-Growth Correlation of the Late ... (2002). Retrieved from NBER
10. The Role of Tariffs in US Development, 1870-1913. (2013). Retrieved from Studyres