How Did Henry Clay Shaped The American Economy

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

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

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