Panic of 1873 - Global Protectionism

Global Protectionism

After the 1873 depression, agricultural and industrial groups lobbied for protective tariffs. The 1879 tariffs protected these interests, stimulated economic revival through state intervention and refurbished political support for the conservative politicians Bismarck and John A. Macdonald (the Canadian prime minister). Chancellor Bismarck gradually veered away from classic liberal economic policies in the 1870s, embracing conservative and progressive policies, including high tariffs, nationalization of railroads, and compulsory social insurance. This political and economic nationalism also reduced the fortunes of the German and Canadian classic liberal parties. France, like Britain, also entered into a prolonged stagnation that extended to 1897. The French also attempted to deal with their economic problems through the implementation of tariffs. New French laws in 1880 and in 1892 imposed stiff tariffs on many agricultural and industrial imports, an attempt at protectionism. The U.S., still in the period after the Civil War, continued to be very protectionist.