The American System.

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Presentation transcript:

The American System

Economic Plan For The American Economy Created by Henry Clay (D-R, Kentucky) Three Factors 1) Protective Tariff : High taxes for foreign imports to help American manufacturers 2) A National Bank : Help regulate American currency and increase commerce 3) Federal spending on infrastructure (roads, canals, bridges, ect) Erie Canal

Southern Economy Rural Lacked Industry Reliance on Slave Labor Eli Whitney: Creates “Cotton Gin” – removed seeds efficiently from raw cotton. Made slavery profitable (increased slavery), cotton became half of Americas exports.

Northern Economy 1800 - 1860 - Industrial - Large cities - Poor soil and short growing seasons (few large scale farms) - Canals and eventually trains control commerce and transportation

Innovations in Transportation

1807 : The Clermont Robert Fulton sails from NYC to Albany Uses steam power Ushered in an era of propulsion boats

1811 - 1838 : The National Road - Also known as the Cumberland Road - Gateway to the West

1825 : The Erie Canal Connected Albany to Buffalo Allowed trade between NYC and the Great Lakes (Chicago, Detroit) Aided in Westward Expansion and Economic Growth

https://youtu.be/HcNJ2RMOd3U

The Erie Canal