The War of 1812 had a negative effect on the US economy, as there was a lot of fighting. During the war, British troops attacked Washington and set the White House and Capitol Hill on fire. This action forced the administration to work toward restoring the buildings. The British, however, were not done. After that, they shifted their attention to Baltimore at the Maryland seaport—a crucial point of entry and exit for American and foreign goods. The attack on the port slowed down America's imports and exports. However, the American economy got back on track after the signing of the Treaty of Ghent, which ended the war. The British navy stopped harassing American ships, which had started the war, and the British gave away parts of the American Northwest, which allowed the expansion of US territory.

The War of 1812 impacted the U.S. economy. Two of the causes of the war were that the British were interfering with our trade and impressing our sailors. Britain was upset that we continued to trade with France, a country with which they were at war. Britain also was in need of sailors so they forced our sailors to serve in their navy. The United States depended on trade a great deal. Before the war, we stopped trading with all countries because of interference with our shipping and trade. This was disastrous for our economy. By going to war against Britain, we sent a message to all countries that we wouldn’t be pushed around. We sent a message we would protect our trade. This was very significant for our economy because once the war ended, we were free to trade with any country with minimal fear of interference. As a result, our economy prospered after the war ended. The War of 1812 proved to be very beneficial to our economy.