The American System Summary

The American System

• Manifestation of Nationalism:

  • Growth of manufacturing as a result of self-imposed embargoes and the War of 1812.

  • American pride in emerging factories.

• Post-War Competition:

  • After 1815, British competitors attempted to regain market dominance by dumping goods in the U.S. at low prices.

  • Aim was to undermine American manufacturing initiatives.

• Call for Protection:

  • American industries demanded protection against British imports, likening the competition to a battlefield struggle for survival.

• Tariff of 1816:

  • First American tariff aimed primarily at protection rather than revenue.

  • Implemented a 20-25% tariff rate on dutiable imports.

  • Although not sufficiently high, it marked a significant protective trend and encouraged further calls for protective measures.

• Henry Clay's Nationalism Plan:

  • Further highlighted the development of a profitable nationalist economic policy.