John Quincy Adams's Presidency

Start Free Trial

What were three major components of the “American System?"

Expert Answers

An illustration of the letter 'A' in a speech bubbles

The American System was an economic concept hinged on three components that included:

  • Subsidies for infrastructural projects such as roads
  • Tariffs to promote and protect locally made products and the industries
  • The establishment of a federal bank to support business activities in the American economy

These three major components worked in concert to establish a strong economy. For instance, the tariffs imposed were collected and used in the construction of roads and canals that in turn improved commerce and agriculture.

The tariffs were imposed on imported goods, which increased the price of European products and motivated the American people to buy locally produced products that were cheaper. Additionally, the tariffs earned the government some revenue used in other development projects.

The...

(The entire section contains 2 answers and 387 words.)

Unlock This Answer Now

Start your 48-hour free trial to unlock this answer and thousands more. Enjoy eNotes ad-free and cancel anytime.

Start your 48-Hour Free Trial

Already a member? Log in here.

Approved by eNotes Editorial Team

Posted on

An illustration of the letter 'A' in a speech bubbles
Approved by eNotes Editorial Team

Posted on