- Overspeculation in land and other assets,
- The rapid expansion of credit by banks,
- And the government's decision to resume specie payments.
The panic led to a sharp decline in economic activity, widespread bankruptcies, and a prolonged recession. The unemployment rate rose to an estimated 25%, and many people lost their homes and savings. The panic also had a significant impact on the political landscape, leading to the defeat of the Democratic-Republican Party in the 1820 presidential election and the election of James Monroe.
The following were the specific results of the Panic of 1819:
- The value of land and other assets plummeted. This led to widespread bankruptcies among farmers, speculators, and businesses.
- The money supply contracted sharply, as banks called in loans and reduced lending. This made it difficult for businesses to borrow money and finance their operations.
- The economy went into recession, as businesses cut production and laid off workers. The unemployment rate rose to an estimated 25%.
- The panic led to a loss of confidence in the government's ability to manage the economy. This contributed to the defeat of the Democratic-Republican Party in the 1820 presidential election and the election of James Monroe.
The Panic of 1819 was a severe economic crisis that had a profound impact on the United States. The crisis led to a recession, widespread bankruptcies, and a loss of confidence in the government. The panic also contributed to the political realignment that took place in the 1820s.