Introduction
The War of 1812 was instigated by the agitation of the Americans due to the dissatisfaction with the British government. One cannot say precisely that any of these sides succeeded in the end, but great domestic gains were vivid throughout the whole country.
The purpose of this essay is to highlight how the events during the War helped to move the American economy in new directions after peace had been restored. Changes spurred by the war ranged from economic changes to large investments, building a stable defense force (Berkin et al 200-250).
Permanent army
The period of War was a hard time for America and Americans since at that time it lacked a strong army and navy. The all-volunteer army was not good enough; what is more, the soldiers had to make their own weapons, in other words, the weapons were handmade. When the War ended up, lack of weapon was the main reason for the government to set up a permanent standing army which was armed to its full; soldiers had their own uniforms, and they were provided with other necessities essential for the military.
President Madison wanted to ensure that there was tight security by increasing the naval forces and erecting fortifications all around America. In the long run, this army matured to be one of the strongest armies in the world. What is more, stable security provided a suitable environment for the economic growth (Berkin et al 200-300).
Establishment of the National Bank.
The lack of existence of the Central Bank in the country was a big problem for the U.S. government as it had no possibility to borrow money or transfer currency across the country.
After the War in 1816, the Bank of the United States (B.U.S) was chartered by the congress. It was used as a depository of government funds; the bank was to handle the government’s banking business for free. The bank had a larger financial standing than the previous Hamilton’s bank used by the government earlier (Conlin 250-300).
Good Infrastructure
The War called for the need of provision of good and regular transport and goods which led to a rapid and huge construction of roads and canals across the country. The war urged the construction of the Erie Canal project, which was built to promote business by cutting the cost of manufactured shipping goods.
President Monroe supported the idea initiated by James Madison to construct a national transportation system, for example, the Cumberland road was constructed to unite the nation. Its construction resulted into more branches being created to make the transportation system within the country easier. Railway transport system was also embraced by the America government after the war had been over (Berkin et al 20-80).
Set up of Factories and Manufacturing Economy.
The British naval supremacy limited the delivery of foreign goods for them to reach America, which induced manufacturing, making it more dependent on its own goods. Factories and industries that were created and built at that time became the source of revenue and employment for the citizens.
Jefferson created an incentive for production of factories and manufacturing products, as well as increase in production of agricultural products which was in a bid to counter the cheap manufactured goods from Europe. The British blocked the American cost breaking the entry of cotton products that led to the establishment of a cotton manufacturing industry (Nash 600-730).
New Foreign Policy
The war changed American foreign policy. Jefferson was a non-interventionist as his predecessors Washington and Adams. When the war ended, President Monroe launched the Monroe doctrine. Its principle consisted in recognizing the newly sovereign Latin countries that broke away from Spain; the doctrine designed a European free western hemisphere.
Protective Tariff
During Jefferson’s period of presidency, the capital investment was concentrated on manufacturing but not commerce; when the war ended, cheap goods from foreign countries started to flood the market, and the American manufacturing needed protection. The foreign goods were quiet attractive to the citizens considering their cheap price being damage to the new upcoming industry.
To protect the American interests and to make sure the local industry was secure, a tariff was introduced to tax foreign imports making the American products cheaper. The 1816 the tariff importance consisted in protecting the American products rather than collecting revenue.
Agricultural Expansion
The war had created a shortage of farm products as many farmers were converted to militia. As a result of this, there was a massive and wild speculation in farmland that resulted into growth of processing industries and stable food supply for the country, hence, providing food security in the country. The United States also became a major exporter of agricultural products to other parts of the world.
Renovation
The War resulted in the destruction of cities and their infrastructure. When the War came to its end, the deplorable state of these areas demanded a quality development strategy. For instance, there was massive renovation after the burning of the Washington in 1814; the city became more prosperous and powerful than it had been before.
The new Washington architecture was new with more artistic designs that later have become major tourist attractions. Such sites included statues of heroes and heroines of war, and other important monuments connected with the history of the country (Berlin et al 370-450).
The Louisiana Purchase.
This was the acquisition of French territory which had always been the America’s interest. It was acquired partially by cash and partially by cancellation of the country’s debts. The new land expanded American territory providing more space for its economic growth. Alternatively, it was a step forward in creating the European free western hemisphere.
It was also a step forward in protecting American trade in the region, and opening up free route through the Mississippi River. After the purchase, the American territory almost doubled, increasing its population and the workforce to enhance the economic and industrial growth (Nash 800-900).
National University
The War also led to technological, economic and political growth. This called for the competition among the elite community to counter the Europeans. As s result, there were huge developments in the education sector with many schools and universities being opened up all over the country. Consequently, the United States gained a highly skilled labor force that could work in its fast growing industries.
Conclusion
The War of 1812 played a significant role in the American economy. Changes made and development strategies initiated at that period resulted into huge developments, which elevated America to become a super power with one of the biggest economies in the world after the war. Post fighting development would advance the country in its rapid development that contributed to a more independent American society and culture.
Works Cited
Berkin et. al. Making America:A History of the United States since 1865. Carifornia: Wadsworth Publishing, 2005. Print.
Conlin Joseph. The american past:a survey of american history. California: Wadsworth Publishing, 1865. Print.
Nash B. Gary. The American People. Harlow: Longman, 2000. Print.