Jump to ContentJump to Main Navigation
When the Party’s OverThe Politics of Fiscal Squeeze in Perspective$
Users without a subscription are not able to see the full content.

Christopher Hood, David Heald, and Rozana Himaz

Print publication date: 2014

Print ISBN-13: 9780197265734

Published to British Academy Scholarship Online: May 2015

DOI: 10.5871/bacad/9780197265734.001.0001

Show Summary Details
Page of

PRINTED FROM BRITISH ACADEMY SCHOLARSHIP ONLINE (www.britishacademy.universitypressscholarship.com). (c) Copyright British Academy, 2020. All Rights Reserved. An individual user may print out a PDF of a single chapter of a monograph in BASO for personal use.date: 07 April 2020

Managing Fiscal Squeeze after the United States’ Panic of 1837

Managing Fiscal Squeeze after the United States’ Panic of 1837

Chapter:
(p.55) 3 Managing Fiscal Squeeze after the United States’ Panic of 1837
Source:
When the Party’s Over
Author(s):

Alasdair Roberts

Publisher:
British Academy
DOI:10.5871/bacad/9780197265734.003.0003

In 1836–39, the United States suffered a financial sector collapse that plunged the nation into a severe economic depression. The revenues of state and federal governments evaporated, prompting legislators at both levels to undertake an extraordinary project of fiscal squeeze. By 1842, one-third of American states were in default on British loans. Meanwhile, the decline of federal revenues heightened partisanship and legislative gridlock in Washington. Strategies of managing fiscal squeeze shifted substantially during the crisis. By its end, many states had resumed payments on their debts, developed new methods of collecting taxes, and adopted constitutional changes restricting deficit financing. Meanwhile, federal politicians completed a painful renegotiation of federal tax policies and adopted a more pragmatic attitude about debt financing of federal expenditures. The effect of the crisis was to produce a transformation in the American constitutional order whose effects are still obvious today.

Keywords:   United States, Panic of 1837, financial crisis, depression, fiscal squeeze, default, deficit financing, constitutional change

British Academy Scholarship Online requires a subscription or purchase to access the full text of books within the service. Public users can however freely search the site and view the abstracts and keywords for each book and chapter.

Please, subscribe or login to access full text content.

If you think you should have access to this title, please contact your librarian.

To troubleshoot, please check our FAQs , and if you can't find the answer there, please contact us.