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In general, the War of 1812 increased American manufacturing capabilities. The blockade created a shortage of cotton cloth, which led to the creation of an American cotton manufacturing industry. Construction of the Erie Canal was sped up because it was seen as a possible military asset.

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βˆ™ 11y ago
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βˆ™ 1y ago

The War of 1812 had a negative impact on the American economy. The British blockade of American ports disrupted trade, leading to a decline in exports and the closure of many industries. Additionally, the war resulted in a significant increase in government spending and borrowing, leading to inflation and a rise in taxes.

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Q: How did the war of 1812 affect the American Economy?
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