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Melody Young

on 22 January 2016

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The American System!

A plan proposed by Henry Clay for developing a profitable home market (yay nationalism!)
Consisted of THREE parts
1) A Strong banking system
2) Protective tariffs
3) Network of canals and roads
The Strong Banking System
Henry wanted one kind of currency for the whole country. It would make trade easier and there would be no need to match the values of different currencies in the US.

This helped unify the country by putting everyone on the same economic playing field. Everyone has the same money, so they are part of the collective economy.
The Protective Tariff
Canals and Roads
The revenue (
money we make
) from the protective tariff would provide enough money to build a series of canals and roads throughout America. Food and raw materials could flow or ride along the paths to promote easier trade within and between the states.

These roads would help nationalism in American because it promoted trade within the states. The roads made it easier for American goods to flow from the South and the West to the North and the East.
The Erie Canal was built during
<----- this time for this purpose.
Henry believed that a 20%-25% tax on imported goods would help manufacturing in the US thrive. With the tax, American made goods were cheaper and therefore more people would buy them.

This tariff helped nationalism because it promoted the American economy. If people are buying inter-American, more Americans benefit and come together to create goods.
Free Enterprise System
The free enterprise system spurred the growth of American companies. With Britain blockading us from some of our foreign resources, we were forced to make it on our own.

The free enterprise companies allowed businesses to sell what they wanted and charge what they wanted with little government involvement. This meant businesses were in control of their profit.

Because of free enterprise U.S. business tried to produce better products at cheaper prices to increase their sales and profits.
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