A Hercules in the Cradle: War, Money, and the American State, 1783–1867

The ability of the American government to tax and borrow money was critical to its ability to wage war and expand its territory, according to Max M. Edling's book A Hercules in the Cradle. He traces the growth of this capacity from the founding to the aftermath of the Civil War, including the funding of the War of 1812 and the Mexican War.

Format: Paperback / softback
Length: 336 pages
Publication date: 28 November 2023
Publisher: The University of Chicago Press

The United States, a nation that emerged two and a half centuries after the American Revolution, stands as a formidable force on the global stage, holding the undisputed dominance in the Western Hemisphere. This remarkable transformation was by no means assured at the time of independence. The conquest of the North American continent necessitated immense violence, sacrifice, and bloodshed. It also demanded the establishment of a robust national government capable of waging war against and acquiring territory from its North American rivals.

In his book, A Hercules in the Cradle, Max M. Edling contends that the federal government's capacity to tax and borrow money, which emerged in the early years of the republic, played a pivotal role in the young nation's ability to wage war and expand its territory. He traces the evolution of this capacity from the founding to the aftermath of the Civil War, encompassing the funding of the War of 1812 and the Mexican War. Edling asserts that the Founding Fathers were acutely aware of the relationship between public finance and power: a well-managed public debt was considered an essential component of every modern state. However, the creation of debt in the American context was always a delicate and contentious matter, and statesmen of various political persuasions endeavored to reduce the national debt during periods of peace.

The United States' rise to great-power status in the nineteenth century can be attributed to its ability to leverage debt effectively. By taking on debt, the nation was able to invest in infrastructure, military capabilities, and other vital projects that facilitated its expansion and dominance. The federal government's ability to tax and borrow money allowed it to finance these endeavors without relying solely on domestic resources, which were limited at the time.

The use of debt also helped to stabilize the American economy during periods of uncertainty. During times of war or economic downturn, the government could borrow money to finance its operations, which helped to reduce unemployment and stimulate economic growth. This ability to borrow money also allowed the government to invest in public works projects, such as roads, bridges, and railroads, which improved transportation and connectivity throughout the nation.

However, the use of debt also had its drawbacks. The federal government's debt grew rapidly during the Civil War and continued to grow in the years following. This debt led to concerns about the nation's financial stability and the ability of the government to repay its creditors. Additionally, the use of debt to finance military operations led to concerns about the nation's military readiness and the potential for military overspending.

Despite these concerns, the use of debt continued to be a crucial tool for the United States in its pursuit of great-power status. The federal government's ability to borrow money allowed it to invest in critical infrastructure and military capabilities, which facilitated its expansion and dominance in the nineteenth century. The use of debt also helped to stabilize the American economy during periods of uncertainty, and the government's ability to repay its creditors helped to maintain the nation's creditworthiness.

In conclusion, the origin power of the United States in the nineteenth century was significantly influenced by its ability to leverage debt effectively. By taking on debt, the nation was able to invest in infrastructure, military capabilities, and other vital projects that facilitated its expansion and dominance. The federal government's ability to tax and borrow money allowed it to finance these endeavors without relying solely on domestic resources, which were limited at the time. The use of debt also helped to stabilize the American economy during periods of uncertainty, and the government's ability to repay its creditors helped to maintain the nation's creditworthiness. However, the use of debt also had its drawbacks, and the federal government's debt grew rapidly during the Civil War and continued to grow in the years following.

Dimension: 229 x 152 x 23 (mm)
ISBN-13: 9780226829364