Economic Transformation After the War of 1812 and the Rise of Industrial Capitalism

The video discusses the aftermath of the War of 1812, highlighting unresolved issues but noting the subsequent period of rapid economic growth. This era marked the emergence of industrial capitalism, particularly in Britain and the US. The Industrial Revolution began in Manchester, transforming production and economic dynamics. Despite British attempts to hinder US industry, both nations cooperated economically. In the US, a pro-development agenda led by Henry Clay promoted financial systems, infrastructure, and protection of infant industries, shaping the nation's economic growth.

What was the outcome of the War of 1812 according to diplomatic historians?

• Significant territorial changes

• Altered trade policies

• No major resolutions

• Formation of new alliances

What significant economic change occurred between 1815 and 1819?

• Decline in industrial production

• Emergence of industrial capitalism

• Stagnation in economic growth

• Return to agricultural dominance

Which city became a key site for textile production during the Industrial Revolution?

• Birmingham

• Manchester

• London

• Liverpool

What was the British strategy towards the emerging US industry?

• Financial investment

• Complete ignorance

• Strangulation in its cradle

• Support and collaboration

What was a key focus of the US pro-development agenda post-1815?

• Small-scale farming

• Large-scale commercial agriculture

• Reduction in industrial output

• Isolation from global markets

Who was a prominent advocate for the American System?

• Andrew Jackson

• Henry Clay

• Thomas Jefferson

• James Madison

What was the first component of Henry Clay's American System?

• Reduction of tariffs

• Sound financial system

• Promotion of small businesses

• Expansion of military forces

What was the second component of the American System?

• Reduction of national debt

• Expansion of the navy

• Increase in agricultural tariffs

• Development of a transportation network

What was the third component of the American System?

• Promotion of international trade

• Protection of infant industries

• Expansion of the banking sector

• Reduction of government spending

Why were tariff protections important for the US according to the American System?

• To reduce government revenue

• To encourage British imports

• To protect emerging US industries

• To lower consumer prices