The American System

Definition

The American System was a set of economic policies proposed by Henry Clay in the early 19th century to promote economic growth and protect American industries. It included three main components: a strong national bank, protective tariffs on imported goods, and internal improvements such as roads and canals.

Related terms

Protective Tariffs: These were taxes imposed on imported goods to make them more expensive than domestic products, protecting American industries from foreign competition.

National Bank: Refers to a central bank that controls a nation's money supply and helps regulate the economy.

Internal Improvements: Refers to investments in infrastructure projects like building roads, canals, bridges or other public works that improve transportation and facilitate trade within the country.