1. The American System

2. 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

3. 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.

4. 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

5. Innovations in Transportation

6. 1807 : The Clermont Robert Fulton sails from NYC to Albany
Uses steam power
Ushered in an era of propulsion boats

7. 1811 - 1838 : The National Road - Also known as the Cumberland Road
- Gateway to the West

9. 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

11. https://youtu.be/HcNJ2RMOd3U

12. The Erie Canal