Andrew Jackson | 7th President of the United States
Domestic Policy
Overview
Economic policy cemented Jackson's legacy as a populist. When South Carolina nullified a federal tariff that displeased the state, Jackson threatened to collect the funds at gunpoint. The state backed down. When Whigs in Congress brought up a bill to charter the Second Bank of the United States -- a private institution that held Federal funds, sold U.S. bonds, and had undue influence over interest rates, but was beholden to no voter -- in 1832, Jackson vetoed it, dismantling the bank; this was the first time a president justified a veto on policy grounds, rather than on constitutionality. For much of the American public however, Jackson's reputation was built not on money matters but on a lady's honor. When Peggy Eaton, the wife of the secretary of war, was snubbed by other wives of cabinet members, Jackson saw parallels with his own late wife's reputation and took the opportunity to dissolve his cabinet for a year, meeting with an informal group of advisors he called the "kitchen cabinet" instead. Not coincidentally, he was able to purge anyone who supported his hated vice president, John Calhoun.
PBS Presidential Biographies
Forefather of the modern Democratic Party
Dismantled the Second Bank of the United States in 1832 on policy grounds
Faced down South Carolina during the Nullification Crisis when state politicians declared they had the right to nullify tariff legislation and any other Federal law that went against state interests
Strengthened the power of the presidency and expanded the spoils system to strengthen his political base through patronage
First and only president to pay off the entire national debt, although severe economic depression from 1837 to 1844 caused it to increase again two years later
Major Legislation Passed under the Jackson Administration
Inflation under the Jackson Administration
Slight Deflation
The first term (1829 - 1832) was marked by a deflation rate of 8 percent.
The second term inflation rate (1833 - 1836) increased by 11 percent.
Inflation is defined as the overall general upward price improvement of goods and services in an economy. Increases in inflation can be evaluated by tracking the Consumer Price Index (CPI), a measure of the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services. Inflation rates in the low single digits are most often associated with economic growth.