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Clay's American System

Introduction

Henry Clay's American system was basically triggered by the increasing need for Nationalism and nationalistic government in the USA. The needs depicted by the western people were not being met with their interests going unnoticed because of their greater dependence on the European countries for the manufacturing and import of goods. All the congressmen and legislators sitting in the Congress of the United States of America had since long failed in defining the role of national government in the development and strengthening of the economic outcome of the nation. To compete with countries like France and England and to become self-sufficient, economic development with the intervention of national government was required who can introduce protectionist tariffs so as to reduce dependence and prompt nationalism. The issue further gained momentum after the War of 1812 and demand for the nationalistic economy started to accumulate more proponents.

Discussion

Triggered by the War of 1812 and the fact that for the survival of the nation it is imperative for them to become self-sufficient; thereby not depending on any other nation for any kind of assistance, Clays American System was drafted. Initially it was more of an imperial approach where power was related to aristocratic nature and it was being used to serve personal agendas rather than serve the public and their interests. But with the transition in ideology; the government now being recognized as the extension of public, came the shift and realization that achieving economic self-sufficiency and independency is vital for the survival of the nation which would invariably be attached with the economic well-being of common people as well as the government. Declaration of war in Europe further indicated to the USA their vulnerability since in the state of war, they would not be provided with the goods for which they depended upon Europe and every after every few years, Europe is in war state.

To be free from Europe and their dependency, Henry Clay's American system was designed keeping in view three major mutually reinforcing elements for the economic development. To harmonize the agriculture, commerce and industry of USA, Clays American system erected protective tariffs for the promotion and protection of domestic industry and national goods, creation of second national bank to aid in commerce activities providing stable medium of exchange and subsidies for infrastructure development and internal improvements. Subsidized funds for the development of infrastructure were deemed to be obtained through the enactment of tariffs.

It prompted various sectional and environmental problems as disparate sections were allocated business areas to contribute to economic boost. The Northeast region which was earlier responsible to transport European goods to the US was entrusted with manufacturing activities under the Clays system because of the presence of hydro-powers along the rivers in the north eastern region. Southern and western region were entrusted with an agricultural role with the production of staples. South's role was the production of cotton whilst western region were to provide the other two regions with ...