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How Did Henry Clay Shaped The American Economy

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The Development of the American Economy There are many factors that contributed into shaping the American economy from a regional to a national economy through Henry Clay's American System, the building of railroads, and the expansion westward. The American System by Henry Clay was a created notion that purpose was to help increase economic growth so that America could become a self-standing country. The railroad was a critical invention that was built with the intention of causing the American economy to flourish and grow in the nineteenth century. The expansion of westward America after the Civil War encouraged economic mobility throughout the nation as it created agri-business as we know it today. There were many important key factors that …show more content…

It promoted capitalism within the US but with the idea that the federal government had a role to play for it was there duty to implicate a place where a market could thrive. Clay proposed three main ways that the government would support this growth (Clay, 1784). The first was the use of a tariff, or taxes on imports, to protect and promote the budding American industry. There was, also, the want of a national bank so there would be a place where loans would be available to people who were looking for a way to jump-start a business and to make a standardized our money system. Lastly, for federal subsidies to pay for things such as roads and canals for easier transportation throughout America (Clay, 1784). The American System created an environment where the government was willing to invest within their people so that the people could prosper finical. This was a brilliant idea because a nation is only as strong the people within it. As the people felt encouraged by the government the economy started to prosper with business and new ideas. The American System helped the US start functioning as an independent country and allowed us to become as strong as we are that lead for Congress to fund …show more content…

Since the producers were using less money to ship goods, it allowed for the sale price of goods to go considerably down. A "production boom" was created as more people were able to afford goods which encouraged businessmen to come up with new ideas on how they could increase production speed and market it (Hornbeck & Donaldson, 2016). Businessmen, and even farmers, were able to invest money into other ideas, equipment, and other advances. In the article, Railroads and American Economic Growth, it states, "railroads' contributions to the agricultural sector were largely irreplaceable, either through extensions to the canal network or improvements in country roads," this is an important statement because greater access to food allowed people to stop farming and able to work factory jobs or pursue education which is resulted to a huge growth in our economy (Hornbeck & Donaldson, 2016). The railroad played a very significant part into shaping the American economy into what it is

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The American System was a plan brought forth by Henry Clay, about economic development. The American system was brilliant plan that allowed federal funding for internal development. This plan created a protective tariff in order to protect American businesses but in turn created a high tariff on imported goods some American industries can strive. The American System helped the textile business, while British were bringing clothes over and selling them cheaper. The American system also wanted to create high land states, so that the revenues my help economic development.

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America began to prosper in the 1920’s because of industrial production being up, wages were rising, and the unemployment rates were low. After World War I America was the world’s leading economic power, because of all the technological changes happening in the industrial companies. Technological changes were happening in many industries, for example Henry Ford began to make his cars on an assembly line, which enabled him to sale more cars and cheaper products. America also had a lot of natural resources, oil being one of them, which is essential in cars. Oil was also very abundant so it sold for cheap prices.

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To say the time period following the Civil War in the United States involved a lot of change would be a understatement. Between the years 1870 and 1900 the people of the United States lived through a period of great change. Not only did they witness technological advances that would change their daily lives, they also saw new laws and organizations formed. All of this was done in hopes of improving the country. Many of these changes came about because of the type of businesses that were formed.

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The major reasons for the United States to develop an empire in the 1800s were the closing of the American frontier, economics, religious and moral reasons, and geopolitics(Schultz,2014). The closing of the American frontier included acquiring new frontier from other countries. Americans believed that the “Wild West” frontier was so integral in shaping America, that we might require a new frontier in order to ensure the survival of its democracy. Economic reasons for the 1800s growth was for business leaders to access overseas markets and materials. They knew they would receive federal assistance and protection from the government.

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The first way that the economy was impacted was that with the ease and efficiency of the railroads, they created a large demand for goods and labor because they needed a lot of people to help build the railroads and also needed a large quantity of steel for the rails and wood for the railroad ties. Secondly the railroads created a huge national market because of the simplicity of delivering goods from place to place. The railroads helped the people in even the most rural place prosper with the cost efficient transportation of the trains. From 1830 to 1861, the United States laid aproximately 30,000 miles of railroad track, which led to an increase in demand for coal which was used to produce iron for the

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