‘national economy’
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‘National Economy’ What do you think this term means? What have you read or heard about the national economy today? Is it good…or bad? Explain. Chapter 12 Sec.3 Reforming the national economy ( 1800-1850 ). Sec. 3 Strengthening the American System. What will we learn?. - PowerPoint PPT PresentationTRANSCRIPT
‘National Economy’
What do you think this term means? What have you read or heard about the national economy today? Is it good…or bad? Explain.
CHAPTER 12
SEC.3 REFORMING THE NATIONAL ECONOMY
(1800-1850)
Sec. 3 Strengthening the American System
What will we learn?
What was the Era of Good Feelings? Who were the 3 Political Giants &
which side did each represent? How did Congress try to strengthen
& reform the national economy? What was Henry Clay’s American
System?
An Era of Good Feelings
Feeling confident, new lands, improvements in transportation, new industries = growth & expansion!!!
1816 – James Monroe (R) defeats Rufus King (F) Monroe: “A new sense of national unity”
1820 – Monroe wins 2nd term No one ran against him… Federalist party dies out
Three Political Giants
Setting the stage: 3 young politicians rose to the top in
the early 1800’s. All played KEY roles over the next 30+
years! John C. Calhoun
South Daniel Webster
North Henry Clay
West
A New National Bank
1816 – Wait, we have a problem… NO National Bank!
The first Bank of the US ended in 1811. Why didn’t they make a new one? Before, Jefferson & Madison didn’t want a
bank… Now they need one! So…the second Bank of the
United States is born. establishes one currency
Competition From Abroad
Post-War of 1812… The North begins to build…but
A flood of British goods in the south What is dumping? Still an issue today!
Congress acts Many (NE) northern businesses fail…people are
furious! Tariff of 1816 is passed – raised tariffs on imports Imagine that a protective tariff is now in effect,
today, in the US. What nations would be affected? How would it affect us?Effect
of a Protective Tariff
Competition From Abroad
Southerners protest No factories
here…we buy British goods…this is bull crap!
People down south are now furious!
Bitter dispute begins – North vs. South
Uniting America
More people began moving westward
The north and south were growing apart creating sectionalism – promoting your section of the country rather than the whole country.
To combat this, Senator Henry Clay (KY) proposed a plan to build nationalism and boost the economy.
It was known as The American System.
Henry Clay’s American System “I will make everyone happy with my plan.” – H.
Clay
1. Keep High Tariffs on Imports “We need to keep high tariffs on imports in order to make
sure our southern states trade with our northern factories.
2. Build National Roads “We can boost the national economy by using the money
from the tariffs to improve our transportation system.”
3. Keep Single Currency “We must use the same money in all states so we can
trade amongst ourselves. This way northern states can trade with southern states.”
But…it never went into effect! South didn’t like the plan…why?
Handout Activity: Class Vote
Daniel Webster (North) John C. Calhoun (South) Henry Clay (West)
Each student will read the arguments for or against the Tariff of 1816 and Clay’s American System.
The class, acting as Congress, will then vote on the measures.