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EPISODE · Jun 12, 2026 · 9 MIN

The 1797 Quasi-War That Created the US Navy

from The Economic History Podcast with Fexingo: Past Recessions, Booms, and Lessons from History · host Fexingo

In 1797, the United States had no navy, no standing army, and a merchant fleet that was being plundered by French privateers. The Quasi-War, an undeclared naval conflict with Revolutionary France, forced the young republic to build a navy from scratch in under two years. This episode dives into the economics of that buildup: how Congress borrowed $800,000, how private shipyards like the one in Baltimore churned out frigates like the USS Constellation, and how the cost of inaction—lost cargo, insurance premiums that tripled—finally outweighed the cost of building a fleet. We trace the ripple effects: the 1798 creation of the Department of the Navy, the rise of American shipbuilding as an industry, and the precedent for federal spending on national security that would shape U.S. fiscal policy for centuries. #QuasiWar #USNavy #1797 #NavalHistory #EconomicHistory #CongressionalBorrowing #Shipbuilding #USSConstellation #FrenchPrivateers #JohnAdams #AlexanderHamilton #DepartmentOfTheNavy #FederalSpending #NationalSecurity #BaltimoreShipyards #MerchantMarine #FexingoBusiness #BusinessPodcast Keep every episode free: buymeacoffee.com/fexingo

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The 1797 Quasi-War That Created the US Navy

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