ID: Commonwealth System
WHEN: 1790 - 1860 (Antebellum Period)
WHO:
State legislatures, particularly in the North
WHAT:
A broad system of state-sponsored economic development. State governments chartered banks, granted corporate charters with limited liability, and invested in infrastructure projects such as roads, canals, and railroads. This system was designed to promote economic growth and prosperity within individual states.
IMPACT: Why Significant?:
- Fueled Early Industrialization: The support for transportation and industry helped lay the groundwork for the Market Revolution and the rise of factory production in the North.
- Increased Power of Northern States: Economic success through the Commonwealth System contributed to the growing political and economic clout of Northern states, which contrasted with the slower industrial development of the South.
- Debate Over Government’s Role: Sparked debates about the proper role of government in the economy. While supporters saw it as promoting the general welfare, critics argued it fostered corruption and benefited special interests. These tensions would continue throughout American history.