How Did The War Of 1812 Affect The Economy

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The War of 1812 is an important event in world history that impacted relationships between the United States and the rest of the world. America was afraid that their freedom was slipping through the cracks and into the hands of Great Britain once again. For a second time, they went to war with the mother country due to their demand for independence, and were also dragged into trading disputes with France. This war triggered internal developments within the United States which had both positive and negative impacts. The War of 1812 led a way to shifts being seen in economic, political, and military advancement. Bank systems were installed to boost the economy after the war, people relied less on unorganized militia and more on trained soldiers, and the Federalist Party diminished in power. As a result, America grew into a stronger country, snagging the attention of nations all over the world.

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Federalism was based on the belief of a strong central government being the best approach at building America into a powerful nation. A man named James Madison wrote the “Federalist 10 Papers” which discusses the many methods of how a strong central government can protect America’s liberty and freedom. It was mentioned frequently how “factions” threaten the sturdiness of our nation. Madison describes “factions” as a group of people who all share the same thoughts, professions, interests and ideas that contrast from the rest of a community. All men had different amounts of wealth and property, opinions, interests and occupations which inevitably secured the fact that those factions would not fade away. If the factions could not be stopped, it was determined that they would be dealt with somehow. Madison explained that a large Representative Government would be the best choice. The large Republic would give the factions more space and places to convey their beliefs, ideas and
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