In the late 1800s and early 1900s, a political concept known as Jacksonian democracy was popular in the United States. White men above the age of 21 were eligible for suffrage as a result. Several federal agencies were also restructured as a result. President Andrew Jackson was the leader of the movement, which advocated for more than democracy in the United States government. Federal monies were withdrawn from the Bank of the United States by Andrew Jackson in 1832.
This led to the panic of 1837, a financial catastrophe that impacted the economies of both the United States and the state of Ohio. Laissez-faire economics and manifest destiny were among the economic policies of the Jacksonian era. When it came to property ownership and taxation, suggestions had weakened by 1850. All white men over the age of 18 were eligible to cast a ballot. The concept of patronage was to place political supporters in their respective offices.
Economies based on laissez-faire economics fostered the development of railroads, banking, and modernization. Many questions remain unanswered since the bank’s inception. Its constitutionality has been questioned by opponents. Even so, the Supreme Court ruled in McCulloch v. Maryland in 1819 that Congress had the jurisdiction to punish the Bank of the United States under the Constitution.
In any case, the Bank remained shaky even after the Supreme Court’s decision, and Andrew Jackson was one of its most vocal critics. There is no doubt about it: His bank-burning didn’t achieve the desired results. Reviving an old-fashioned economy wasn’t enough for him, so he set out to destroy the Bank. He had to rein in the market economy’s credit-driven, speculation-revealing behaviors.
All of the dirty financial activities that he associated with banking institutions had to be put an end to. Contrary to expectations, the demise of the Bank has only resulted in the growth of other state institutions, many of which carry out the identical policies he decried. Nearly 347 new state-approved banks established between 1830 and 1837, and many of them offered loans that were distinct from those offered by the BUS during this period.
There was less concern over the country’s money supply since they were eager to start growth and more eager to inject more money, on a more favorable terms, into the economy. Short-term economic booms in the United States were sparked by a combination of factors including a rise in cotton earnings, a surge in silver deposits from Mexico, and an increase in investment capital from Britain. Within a few years, the boom would collapse and Jackson would be able to say, “I told you so”.
Although he was no longer in charge of the American economy, he nevertheless had a significant impact on it. For all the hate of economic privilege he shared with the ordinary public, he missed to welcome the popular populace’s genuine delight for expanding, rather than decreasing, access to the booming cosmos of speculation, paper currency and credit.
In the aftermath of his victory over the Bank of the United States, Jackson’s legacy was both imperative and uneven. State-sanctioned banks were able to operate more autonomously as a result of the legislation. Because of this, the money supply expanded and credit became easier to get by. However, it also left the banking system of the country without any governmental coordination or oversight. Before the Civil War, the government was unable to propose any modifications to the national monetary and banking system.