This all resulted in a time period known as the Era of Good Feelings. During the Era of good feelings, the government took a greater role in the economy. Congress established the second Bank of the U.S. in 1816, five years after the first Bank’s charter ran out. It was decided that a second Bank needed to be established because the state banks made too many loans and issued too much money, leading to an increase in spending and rising prices. British dumping into the United States was also a problem for the nation after the War of 1812. To solve this issue, a protective tariff called the Tariff of 1816 was passed, and it put a tax on foreign goods. Despite the fact that these were unconstitutional and non-Republican actions, the people allowed it because they were blinded by the nationalism they gained over the War of 1812. Another effect of the Era of good feelings was the central government gaining more power over the states. In the McCulloch v. Maryland Supreme Court Case, the state of Maryland attempted to tax their branch of national government. The Court’s decision, written by Chief Justice John Marshall, strengthened the central government’s power by ruling that a state has no power to pass a law that violates a federal law. This case, as well as The Gibbons v. Ogden Supreme …show more content…
Nevertheless, he changed his views and supported the rich. Higher class citizens liked the second Bank because it made loans to businesses, formed a stable currency, and created a safe place for government funds. Conversely, lower class citizens disliked that the bank restricted loans. They also believed the bank caused an economic crisis. Andrew Jackson despised the second Bank and its President, Nicholas Biddle. Since Jackson came from an unwealthy family, it is understandable that he hated the fact that Biddle did favors for the rich and represented privilege. When Biddle renewed the Bank’s charter before it ran out, Jackson attempted to stop him by vetoing the bill. As a result, it increased the power of the presidency and the Bank no longer existed in 1836, when its charter ran out. However, without a bank, it was harder for the new president to pull the U.S. out of an economic crisis. The nullification crisis was brought about by a tax on products that would help northern states. However, the southerners thought the tax was not fair. John C. Calhoun supported them by saying the states could nullify the law based on the Virginia and Kentucky Resolutions. Northerners, along with Andrew Jackson and Daniel Webster, were against nullifications and argued that the central government needs to be stronger than the states in order to keep the union together.