The United States Economic System: The American System

The new government views in the late 1800’s helped to promote America’s huge industrial growth because not one party controlled the government anymore; so all views were used to formulate new ideas.

it had three points..a strong banking system, a protective tariff, and a federally funded transportation network

Entry 1 Market Revolution What was the impact of the Market Revolution? In the beginning of the nineteenth century, people's lives changed remarkably. The typical person living before the Market Revolution focused on individualism. These people often farmed and survived on their own. After the Market Revolution, people started manufacturing and increased trade.

While Democrats argued that protective tariffs would be detrimental to consumers, especially from the South, tariff revenues were able to give America an edge over other nations in the market. Even though tariffs would result in more jobs, help eliminate poverty, and protect workers, corporations failed to pass their benefits to workers, and gained monopolistic power. Furthermore, adhering to the gold standard was another critical economic decision for Republicans. In effort to replace “bimettalism,” Republicans adopted the gold standard. While it did attract investment capital from European nations, and led to the exchange of U.S. bonds and currency, the gold standard plummeted the nation’s money supply as silver was more abundant. Thus, the national policies implemented by the Republicans during the Civil War and Reconstruction were able to stimulate economic growth, but also at times hinder growth.

After the War of 1812, America experienced a prosperous time due to economic well-being. This was called the “Era of Good Feeling” because there was only one primary political party at the time, Republicans. Henry Clay created the American System, a policy to promote industry in the United States. This system brought along the creation of the Second National Bank, a high protective tariff on imports, and the building of new roads and transportation to link the country together.

In the novel Andrew Jackson vs. Henry Clay, written by Harry L. Watson, the many differences between our 7th president and the man who tried so often to hold that coveted position are shown in great detail. These two men not only differed on every political issue that came to their attention, but they also had a great hatred toward each other as people. Just as Jackson and Clay were passionate about their beliefs, so were their followers. The Americans who followed Jackson hated Clay just as much as Jackson did and vice versa. This made Jackson’s two term presidency that much sweeter for the “Jackson Party” and Andrew Jackson himself.

Following the War of 1812, Henry Clay, John C. Calhoun, and John Quincy Adams helped form a new political agenda, which promised to meet the needs of America. It was a new nationalist United States. Henry Clay's "American System" was a neofederalist program of a national bank, a tariff to promote and protect industry’s, and financial improvements.

With more wealth, more ideas were beginning to surface on how to better the American lifestyle amongst the states; one of those ideas was “The American System” brought up by Henry Clay. The goals of this system was to increase the country’s wealth with an effective banking system, creating a set of roads and canals throughout the country to unite the states and spread information further, and do all that in correlation to another protective tariff placed on oversea trading. So as you can see because nationalism manifested itself in American politics to unite the country even more, different methods were proposed and carried out to better American lifestyle. Even when congress deemed some methods unconstitutional, the states sought individual ways in which they could improve the U.S like New York’s construction of the Erie Canal. Nevertheless, the country began to undergo positive changes as a result of the political nationalism rising in the country.

Isolationism is defined as a “National policy of avoiding political or economic entanglements with other countries.” (Isolationism). Isolationism was a popular concept in the years between the revolutionary and civil wars. George Washington was a key supporter of isolationism, as he stated in his farewell address, “The nation which indulges toward another an habitual hatred or an habitual fondness is in some degree a slave.” (Washington).

Transportation began to fuel the American economy during the Market Revolution by adding many different ways to transport goods and to get around the country. These roads were made of mud, which happened to be quite an issue during the different seasons. In the spring,all roads turned to mud, in the summer all roads were dust and in the winter these roads were snow and ice which made it difficult to travel on. The national road was made and was the only road funded by the national government, all of the other roads were funded by private investors. The national road opened up travel through the East and the West, which began to help foster a national community. Canals were starting to expand from not only running North and South, but creating ways to get East and West as well.The farmers began an eight year long project, which was taken over by Irish immigrants and they created the Erie

In the United States, citizens have the freedom to speak their mind whether they are speaking about minimum wage, poor working conditions or government policies. Americans have the freedom to choose where they want to live, what kinds of jobs they want to work and have the option to travel across the world without restrictions. U.S citizens have the ability to have whatever kind of religious beliefs they want and can choose whether or not to attend church. The American system was superior because it allowed citizens to choose their own path in life without having to follow the masses. Not only that but the economic system was "booming" in the United States faster than the Soviet Unions.

In the 1820's the Kentuckian focused on advancing a series of economic proposals dubbed an "American System". These policies would amalgamate various economic interests with regard to industry, agriculture, and commerce into a whole system that would benefit Americans individually and collectively thus binding the nation together. In order to produce the complete fruition of the system, Clay sought to use the federal government as an effective instrument to guide its implementation with measures that would revolve on the two policies of tariff protectionism and infrastructural development. A protectionist tariff, Clay advocated, would promote more domestic production while protecting the market price of goods from foreign commercial competition. Combined with the newly minted Monroe Doctrine which warned European powers about new colonial adventures, the American System, in Henry Clay's view, would create a further hemispheric hegemony. While most American manufacturing was in its infancy, Britain wanted to maintain free trade and laissez-faire policy measures which would keep an industrial balance tilted in their favor. A growing mid-West favored protection, as well as New England, but the southern states, who were emerging into a monolithic economy based on an

The combination of economic chaos and confusion following the American Revolution with the virtually nonexistent economic powers of the federal government under the Articles of Confederation put US in a very poor economic position upon the arrival of the Constitution (American Pageant 161). This, however, changed under the Constitution and thus during the administration of Washington as the federal government could now have a large say in the economics of America. After being put into office, Washington established a cabinet and assigned Alexander Hamilton, one of the founding fathers, to be the Secretary of Treasury. Knowing that debt and the growing interest rates were a very large domestic problem, Hamilton set out to create a plan for a strong economy. He first implemented tariffs, which are taxes on foreign goods coming into the country, into his plan, hoping that it would stimulate manufacturing within the country (Chernow 163). Although this did succeed in stimulating industry within America, it also angered many Americans in the south and west because they did not manufacture many goods, but were rather mainly consumers and merchants who were those being taxed the most (Chernow 153).

The main focus in the early 1800s was to help maintain American products by keeping them in The United States. At this time, Henry Clay, John Calhoun, and John Quincy Adams were the leaders of the Whig Party and were the creators of the American System. The American System was a new form of federalism and was designed for several reasons. The new system was in support of high tariff. Tariff is a tax that is paid on imported and exported goods. This would help protect the American industries. It was also create revenue for the government. Henry Clay was the mastermind behind the argument of tariff. He thought that the West would be in support of the tariff because factory workers would be the consumer of the product. He thought that the South should be for the tariff because of the current cotton industry. However, both the West and the South were opposed to high tariff. The phrase "American System" first came about in 1824, although Clay played around with the idea long before then. The high tariff would finance the development of internal improvements such as roads and canals. The tariff also limited American goods to America (Schultz 2012).

Economic systems are organized way in which a state or nation allocates its resources and apportions goods and services in the national community. An economic system is slackly defined as country’s plan for its services, goods produced, and the exact way in which its economic plan is carried out. There are three types of economic systems exist, they are command economy, market economy, and mixed economy. Command economy is also sometimes called planned economy. The expectations of this type of economy is that all major decisions that related to the construction or production, distribution, commodity and service prices are all made by the government. However, in market economy, national and state governments play a