Economic Mistakes Of The United States

The United States of America is seen as one of the most powerful countries in the world, however years ago it struggled with economic disasters , similar to what developing countries are facing today. However today, the United States is still not immune to these disasters, an example of this is the recession of 2008, that affected thousands. The financial panics and economic depressions that the country faced, has helped it to be more prepared for future expected bumps in the road. From each economic disaster that has occurred in the United States a lesson is learned.
President Andrew Jackson detested the Bank of the US. In his eyes it was unconstitutional and favored the wealthy and higher class citizens. He sought out a way to “fix” this
This idea seemed like it work on paper, but in reality it didn’t, it made the situation worse. The Pet Banks began to panic, they couldn’t provide for the people, leading to them closing their doors because they ran out of gold to give to the citizens. By attempting to fix the problem, it led to a bigger disaster. Part of this was Jackson’s fault, but it was also the fault of the people running the pet banks and the citizens of the United States. Instead, of coming together to find a solution to fix the problem at hand they panicked, which is a key aspect in how the economic disaster kept growing. As stated earlier, Jackson was at fault as well, he believed that his plan would work and he would be seen as the hero, who would save the people from sinking deeper and deeper into depression because of his earlier actions, however in reality the exact opposite took
Businessmen in the North blamed this panic on the tariff of 1857. Similar to what occurred during the panic of 1837, American Banks lost their advantage and some business had suspended operations. However, before this financial panic occurred, the nation had a time of opulence and the economy flourished (Duncan 1) Railroads, agriculture, and textiles thrived during this time period (Duncan 1), putting all of the worries and doubts of the panics that occurred in the past were left behind. Nervous depositors in banks is what led US banks to call for loans to pay off the depositors. The people began to panic and did not work together to solve the problem at hand, resulting in a economic depression to sweep the United States once again. As seen in the panic of 1837, factories shut down, business began to fail, prices began to dwindle, and the unemployment rate skyrocketed (Duncan 1). Railroads, which were the main source of transportation during the 19th century went out of business (Duncan 1-2). The country was no longer confident, it was broken once again, and the people grew