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American System

The term American System can mean one of the following:

  • American system of manufacturing, for a system of manufacturing developed in America.
  • American System (economic plan), for the program of Henry Clay and the Whig Party.
  • American School (economics), for the Hamiltonian American School of which the American System (economic plan) is a part.
  • United States customary units, a system of measurement used in the United States
American System (economic plan)

The American System was an economic plan that played a prominent role in American policy during the first half of the 19th century. Rooted in the " American School" ideas of Alexander Hamilton, the plan "consisted of three mutually reinforcing parts: a tariff to protect and promote American industry; a national bank to foster commerce; and federal subsidies for roads, canals, and other ' internal improvements' to develop profitable markets for agriculture." Congressman Henry Clay was the plan's foremost proponent and the first to refer to it as the “American System”.