Unformatted text preview: Doctrine was
introduced to Congress. It basically called for: no more
European colonization of the Western Hemisphere or
European intervention in independent American nations.
In return the US wouldn’t interfere in Europe.
- Essentially, the MD was a big bluff b/c the US didn’t
have the military strength to enforce it. Luckily, the British
had their own motives for keeping the rest of Europe
away [trade], so it worked out. *Economic Growth after the War of 1812*
83 - After the War of 1812 Americans became increasingly
involved in the market economy, and jobs became more
specialized as transportation improved.
- As farmers and craftsmen formerly had only to cater to
the needs of their small communities, where bartering
allowed them to get goods they couldn’t produce
themselves, with the spread of canals and railroads, they
began producing crops and goods for cash sale in nat’l
and internat’l markets.
- The division of labor, combined with increasing
mechanization, new financial methods and transportation
caused tremendous expansion in the economy, which
prompted more improvements, and so on.
- Growth, however, was uneven: there was great
prosperity from 1823 – 1835 and from 1839 – 1843, but
in between there were periods of deflation [dec. in prices]
where banks collapsed and many businesses failed.
These cycles were known as boom-and-bust cycles.
- The first crash occurred in Panic of 1819 – avid
speculation on Western lands had led to a precarious
situation, and when manufacturing fell in 1818, prices fell
drastically. This devastated workers.
- What caused the boom-and-bust cycles? Direct result
of the market economy b/c prosperity first stimulated
demand for manufactured goods, leading to higher
prices, higher production, and speculation in land. When
production surpassed demand, prices and wages fell,
causing land and stock values to collapse.
- Most felt that the B&B cycles were a way of weeding
out unprofitable businesses, making the economy more
efficient. And, at least in theory,...
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This note was uploaded on 04/02/2014 for the course APUSH AP United taught by Professor Orban during the Fall '10 term at Harrison High School, Harrison.
- Fall '10