American System

Definition

The American System was an economic plan proposed by Henry Clay in the early 19th century that aimed to promote economic growth and national unity. It included policies such as protective tariffs, a national bank, and internal improvements.

Related terms

Protective Tariffs: These are taxes imposed on imported goods to protect domestic industries from foreign competition.

National Bank: A central bank created by the government to manage a country's money supply and provide financial stability.

Internal Improvements: Refers to investments made in transportation infrastructure like roads, canals, and railways to improve trade and communication within a country.