USA HISTORY

Detailed explanation-1: -Q: What was the impact of the panic of 1819? The remarkable economic expansion post the war of 1812 came to an end in 1819. Mortgages were foreclosed, people were rendered homeless, unemployment was at a high, and fall in prices negatively impacted both agriculture and manufacturing.

Detailed explanation-2: -The primary cause of the Panic of 1819 was lax banking practices that allowed far too many banking notes and credit to be released than were firmly backed by hard currency. Land speculation-specifically in the west-ensued, driving prices ever higher.

Detailed explanation-3: -The financial disaster and recession provoked popular resentment against banking and business enterprise, along with a general belief that federal government economic policy was fundamentally flawed. Americans, many for the first time, became politically engaged so as to defend their local economic interests.

Detailed explanation-4: -The Panic introduced Americans to the new phenomenon of boom and bust, changed the country’s attitudes towards wealth and poverty, spurred the political movement that became Jacksonian Democracy, and helped create the sectional divide that would lead to the Civil War.