Question

32.   Which of the following are correct concerning the American political economy of the early 19th century? (List the letters of all the correct answers. If none are correct, write “none”.)

(a)   Resources were plentiful.

(b)   Government taxation and regulation were minimal.

(c)   There seemed to be a strong link between effort and results.

Answer 1

Sol:

All of the given answers are correct.

(a) Resources were plentiful

True. The U.S. expanding economy in the 19th century due to industrialization, immigration, territorial expansion and technological innovations. In 1800, the economy was largely agricultural based, but by the end of the 19^th century the America had one of the largest industrial economies in the global.

• Land and Resources

The America possesses large natural resources and America expanded its territory during the 19^th century. These resources played a vital role in economic growth of America. Lands are opened up new opportunities for business as settlement created new farm, towns and cities.

• Manufacturing

America is a agrarian country but it became increasingly industrialized throughout the 19^th century. Second half of the 19th century witnessed railroads criss crossing the America. The development of steam engine, power driven production equipments and cheap labor force with newly arrived immigrants. Factories dominate urban areas and people flocked to the cities for seeking work in new industries.

• Economy and government   

the country was divided over the idea of a central bank. Some felt national bank was needed to help the economy. Others,particularly influenced by Jefferson and Jackson, saw the national bank as unnecessary intrusion of the government and the America lacked a national bank for 19th century. Banking was controlled by the states and the value of currency and banknotes varied and were subject to corruption.

(b) Government taxation and regulation were minimal

Income taxation in the United States began in the 19^th century. Early Americans paid a very low tax rate both by modern and contemporary standards.  Americans favored indirect taxes such as import tariffs rather than direct taxes such as excise taxes that is taxes on specific good like whiske or land tax. Tax rate did climb significantly after the Revolutionary War as states struggled to repay their debts.

(c) There seemed to be a strong link between effort and results

True. In 19^th century United States is known for the vast expansion of its industrial plant and output. These huge increases was the large production of goods by machines.19^th century was an era of rapidly accelerating scientific discovery and invention with significant developments in the fields of mathematics, physics, chemistry, biology and electricity that laid the ground work for the technological advances of the 20^th century. There is a strong link between effort and results in 19^th century.