List the economic problems Martin Van Buren faced.
1. Panic of 1837: One of the biggest economic problems faced by Martin Van Buren was the Panic of 1837. This financial crisis was sparked by the collapse of speculative land investments, the decline in cotton prices, and the closure of banks. The Panic resulted in widespread business failures, high unemployment rates, and a severe economic depression that lasted for several years.
2. High levels of debt: During Van Buren's presidency, the United States faced significant levels of public debt. This was primarily due to the expensive internal improvement programs initiated by his predecessor, Andrew Jackson, and the increasing expenditures of the federal government. Van Buren had to wrestle with finding ways to address the mounting debt without damaging the economy further.
3. Lack of a national banking system: Van Buren inherited a fragmented banking system that was primarily state-based, without a strong central bank. This lack of a unified national banking system made it difficult for the federal government to effectively regulate and stabilize the financial system and contributed to the severity of the Panic of 1837.
4. Inflation and deflation: The country experienced significant inflation in the years leading up to Van Buren's presidency, primarily fueled by speculative land purchases and the easy availability of credit. However, after the Panic of 1837 hit, the economy suffered from severe deflation, causing a decline in prices, wages, and economic activity. This deflationary spiral further aggravated the economic challenges faced by the Van Buren administration.
5. Opposition to government intervention: Van Buren, being a staunch supporter of limited government interference in the economy, faced challenges in implementing measures to address the economic problems. He believed in a laissez-faire approach and was reluctant to provide direct assistance to struggling businesses and individuals, leading to criticism and resistance from those who called for more government intervention.
6. International economic factors: The economic problems faced by Van Buren were not confined to domestic issues alone. The United States was also impacted by international economic factors, such as the decline in European demand for American products, which hurt American exporters. Additionally, the British economic downturn and the subsequent reduction in imports from the United States further contributed to the economic challenges faced by Van Buren's administration.