The early 1800s marked significant changes in American politics, economics and foreign relations that shaped the young nation's future.
The Era of Good Feelings brought a period of apparent political unity after the War of 1812, as President James Monroe's administration saw the decline of the Federalist Party and emergence of a one-party system under the Democratic-Republicans. This unity was reflected in Monroe winning the 1820 election almost unanimously. However, this period of harmony was disrupted by the Panic of 1819, America's first major economic crisis. Multiple economic crisis factors contributed, including: a sharp decline in cotton prices, the failure of many state banks, widespread foreclosures, and high unemployment. The panic exposed weaknesses in the nation's financial system and highlighted growing economic divisions between different regions.
On the international front, the Monroe Doctrine of 1823 became a cornerstone of American foreign policy, declaring that European powers should no longer colonize or interfere in the Americas. This policy was partly motivated by Latin American revolts against Spanish and Portuguese rule, as newly independent nations emerged throughout Central and South America. The Monroe administration sought to protect these new republics while asserting U.S. influence in the Western Hemisphere. The doctrine established America's role as a defender of democracy in the region, though at the time the U.S. lacked the military power to enforce it. This period also saw important territorial expansion through the Adams-Onís Treaty with Spain, which added Florida to U.S. territory and established clearer western boundaries for the growing nation.
