Economic Impact of the War of 1812

American System

- An economic program promoted by US Government. - Included high protective tariffs and establishing the Second National Bank. -This would eventually help America industrialize and become an economic power.

Second National Bank

- Bank established by Congress under President Madison. - Intended to encourage national economic growth after the War of 1812.

Textile Mills

- Factories where clothes and fabrics are mass produced. - Provided jobs for a lot of people.

Cotton Gin

- Invented by Eli Whitney. - A machine that dramatically reduced the amount of time it took to separate the seeds from cotton. - Made growing and selling cotton more popular.

Commercial Farming

- Large-scale production of crops intended for widespread distribution in the global market.

Mechanical Reaper

- Machine invented by Cyrus McCormick. - Could harvest wheat quickly. - Required less labor force.

Globalization

- When businesses interact at an international level.

Market Revolution

-- Advancement in transportation, communication, and the production of goods. - When American economy transitioned from an agrarian-based economy to an industrialized economy.

Protective Tariffs

Taxes placed on imported goods, often to raise prices and protect domestic (American) producers.