Andrew “Old Hickory” Jackson & the Economy of the Early US

Important Economic issues of the early 1800’s War of 1812 brought a feeling of nationalism Supreme Court cases highlight national power Marbury v. Madison 1803 McCulloch v. Maryland 1819 Gibbon v. Ogden 1824

Important Economic issues of the early 1800’s con’t 1793 Invention of the Cotton Gin leads South to be “Cotton Kingdom” 1811 Nation road is funded by federal government giving the feds a role in interstate commerce 1825 Erie Canal opens important water route to the ‘west”

Nationalism converts to sectionalism by the mid 1820’s Prior to the 1820’s The north industrializes, the South becomes more agrarian, and the “new West” is in the middle The American System is proposed by Pres. Madison and advocated by Henry Clay & John C. Calhoun The Second National Bank is chartered in 1816 for 20 years New tariffs attempt to protect Northern industrialists, however the South & West disagreed with the tariffs

The Great Pacificator- Henry Clay The Great Nullifier- John C. Calhoun

The Missouri Compromise of 1820 The Compromise dealt with the expansion into new territory and the issue of slavery.

The Presidencies of the 1820’s & 1830’s 1824 the “Corrupt Bargain” election occurs – John Quincy Adams (son of a former president) wins. Jackson cries fowl! Under his presidency, more people gain the right to vote 1828 Jackson is elected on the backs of the “common man” and ousts Adams. He rewards his loyal followers saying, “to the victory belong the spoils of the enemy”

Jackson: A controversial president Supported Georgia in its efforts to remove the Cherokee from their land, despite a Supreme Court ruling against the state. Vetoed renewal of the charter for the Second Bank of the United States in 1832, charging that the Bank misused its economic power. Issued a proclamation against state nullification of federal law in 1832, warning "disunion by armed force is treason.“ Recognized Texas as an independent republic in 1837 and appointed a U.S. diplomat to the republic.

Jackson: A controversial president Jackson hosted grand parties at the White House that were open to the public. (one party featured a 2-ton block of cheese) Jackson was the only president who ever paid off the national debt. Jackson's soldiers nicknamed him "Old Hickory" in honor of his toughness. The hot-tempered Jackson killed Charles Dickinson in a duel after Dickinson made insulting remarks about his marriage.

The Inaugural “Ball”

Nullification, states’ rights & the Tariff of Abominations South Carolina believed in the idea of nullification of a federal law Jackson favors states’ rights except if it was a threat to him and the union Calhoun calls the tariff “disgusting & loathsome”, believes that nullification is ok & quits as Andy’s Veep The Force Bill makes Andy appear to be a nationalist

Andy’s War against the Bank The Second National Bank had received a new charter in 1816 and was due to be renewed in 1836. Henry Clay brought it up early (an election issue) because he knew Jackson would veto it Jackson disliked the Bank intensely, believing it served only the wealthy He favored state banks  his “pets” Federal money was deposited in state banks creating inflation because now the banks had lots of $ to lend (not a very wise idea)

                                                                              

Jackson leaves the mess to his Veep Martin Van Buren wins the election of 1836 and inherits the Panic of 1837….a minor depression by Great Depression standards. Van Buren was philosophically opposed to direct government action in combating the nation’s economic ills, a position that probably cost him reelection in 1840. The Whigs, however, capitalized on the misery, electing William Henry Harrison as their first president. And we shall return to this political debate in the 1930’s………

King Andy