The Historic Period of the American System

The American System
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The American System
The American System was an economic policy proposed by Henry Clay in 1824 to improve and stabilize the economy by introducing a protective tariff to allow the country to raise money from these taxes (Baxter, 2014). The reason for selecting this topic is that it had a strong nationalist appeal. Developing home markets would protect the country from uncertain foreign events. Economic independence could also ensure that America was protected from insufficient goods caused by distant conflicts (Ha, 2015).
Clay's plan was influenced by the war of 1812 that spiked nationalism and inspired some members of Congress to seek ways of uniting the nation economically (Van Atta, 2011). These members intended to force the US to become independent instead of depending on Great Britain. In 1824, Clay proposed the American system to solve the puzzle. Sections of America would produce specific goods and sell them to other regions (Baxter, 2014). Clay called for the federal government to implement protective tariffs and international improvements (Grodzins, 1966). He also suggested that the national bank should help develop the country's economy.
Clay's principal argument was that protecting the country's manufacturers from foreign competition would spur America's industries to grow through ever-increasing internal markets (Ha, 2015). The plan had three main components: transportation, revenue, and federal bank. Transportation consisted of developing infrastructure like roads, bridges, and canals to promote trade and increase market accessibility (Van Atta, 2011). Revenue would be raised by introducing tariffs and selling public land. Tariffs would protect American commodities from imports (Baxter, 2014). The funds collected from land sales and tariffs would be deposited at the federal bank.
The American system is of interest to the larger study of history because it explains how America's economy came to stabilize. It is worth noting that this plan is one of the most effective government programs in American histo...