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Thomas Jefferson was elected president in 1800 after the actions of John Adams. Jefferson's government defended the rights ensured by the Bill of Rights, and also had the respect for the powers in each state., The Louisiana Purchase and the treasury surplus for the national debt were in addition of the changes made during Jefferson's time. American commerce was severely damaged when the Embargo Act was passed, which seemed to be his only flaw in his first term. Other than that, Jefferson's vision of government was becoming clearer; the Federalists were speechless once he was reelected in 1804.
James Madison was elected in 1808, which gave the Federalists full control again. With the failure of the Embargo Act, the Non-Intercourse Act was passed, which let the U.S. trade worldwide, with the exception of France and Britain. The Macon's Bill No. 2 was passed, which basically reversed the ban of trade with France and Britain. However, the president had a choice of whether he wanted to ban those countries again if they came to an agreement. Madison proclaimed war due to Napoleon pushing his buttons. The Republicans were in full control of both houses of Congress; however they were a divided majority. The War Hawks took over Congress, and were successful in declaring war in June 18, 1812 on Britain. The War Hawks were a group consisting of Republicans from the West and the South. .
In 1790, the United States was known as a prosperous nation who can provide for themselves. The U.S. sent supplies and good overseas so that the items can be used for trade, specifically manufactured goods. The self-sustained internal development of the Northern United States was the main guide towards the northern economic development. It became recognized that rural markets were expanding, imports were unreliable wages, and the countryside was becoming crowded with people willing to work. As a result, Northern businessmen began to invest in factories and the governments of the Northern states that built roads and canals that linked farmers to distant markets.