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During the War of 1812, the American economy went through many changes. The British blockaded the eastern coast of the United States, which prevented the Americans from engaging in foreign trade. Decaying, centuries-old factories in the United States were restored and reused, while new factories were being built.
The war helped shape national identity by showing Americans that they needed greater infrastructure, a better and bigger army with better equipment.
The war was a sign for another national bank. The War of 1812 changed the course of American history. Because America had managed to fight the world's greatest military power to a virtual standstill, it gained international respect.
Furthermore, it instilled a greater sense of nationalism among its citizens. It also set the foundation for improved American-British relations and secured the long-term sovereignty of the American Republic. As a result of the end of the war, the Federalist Party collapsed, ushering in a period of time known as the ''Era of Good Feelings''.
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