Reference no: EM133770977
Overview
After 150 years of allowing the American colonies flexibility in their economic development, the British Parliament began to impose restrictions on the American Colonial economy. These policies resulted in a significant percentage of colonial merchants, bankers, and planters to protest which resulted in the American War for Independence. During the war years significant aspects of the American economy were impacted and some new trade policies emerged. The same year the American Revolution broke out (1776) the concept of laissez faire was articulated by British economist, Adam Smith. Irenically, the American Colonial system had already been acting on its principles.
Upon the creation of a new nation, the former American colonies (now the United States) began to experience a series of economic and political issues that resulted in developing a new government legal framework known as the U.S. Constitution. In the formative period under the Constitution, Alexander Hamilton emerged as the principal spokesperson for the merchants and bankers while Thomas Jefferson represented the ideology of the American farmer. The first phase of the national economic system was dependent and benefited by the Transportation Revolution (roads, canals, etc.). There was significant development in technology which greatly expanded the country's principle economic sector, agriculture. At the same time there was significant movement to an industrial economy particularly in the New England area. The nature of how business organizations specialized and conducted their operations were undergoing changes and greater sophistication.
Objectives
At the end of this module, students should be able to:
1. Analyze the American Economy during the Revolutionary War
2. Examine Alexander Hamilton impact government/business relations
3. Compare the differences between Jefferson and Hamilton on government and the economy
4. Illustrate the role of government, innovative technology, and entrepreneurship in American Capitalism
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