The WallBuilders Show The Surprising Constitutional History of Tariffs and How They Shaped American Prosperity- with Bill Federer
The forgotten economic foundation of America lies hidden in plain sight - tariffs. For over 150 years, these import taxes funded 90-95% of the federal government while simultaneously protecting American industry and workers. This eye-opening exploration of tariff history challenges everything we've been taught about international trade and taxation.
Bill Federer takes us on a constitutional journey beginning with George Washington's Tariff Act of 1789 and the creation of the Coast Guard specifically to enforce these vital revenue mechanisms. The narrative weaves through America's industrial revolution, where tariffs enabled northern factories to flourish, creating the fastest rise in living standards humanity had ever witnessed. Women were liberated from menial tasks as factory-made products transformed daily life with ready-made clothing, indoor plumbing, and modern conveniences.
The prosperity of America's Gilded Age stands as testament to the effectiveness of tariff policies, with ornate public buildings and infrastructure developments showcasing the nation's wealth. Everything changed with Woodrow Wilson's introduction of income tax on the wealthiest 1%, later expanded by FDR during World War II through paycheck withholding - a clever mechanism that obscured the true tax burden from workers.
Most surprising are John F. Kennedy's economic insights, which mirror today's tariff debates. Kennedy recognized that high taxation drove American capital overseas and advocated for tax cuts to stimulate economic activity. His assertion that "tax rates are too high, tax revenues are too low, and the soundest way to raise the revenues in the long run is to cut tax rates" offers a profound perspective on current economic policy discussions.
Ready to challenge your assumptions about tariffs and discover how they shaped American prosperity? Dive into this provocative historical journey that reveals how returning to constitutional funding mechanisms might address today's economic challenges.