What caused Sudden uncertainty in the economy during the Era of Good Feelings?

Answer 1

Sudden uncertainty in the economy during the Era of Good Feelings, particularly around 1819, was primarily caused by the collapse of the post-war economic boom and the subsequent Panic of 1819. Factors such as over-speculation in land, a decline in agricultural prices, and restrictive credit policies by banks led to widespread bank failures and economic distress. Additionally, the downturn was exacerbated by the tightening of monetary policy by the Second Bank of the United States, which aimed to stabilize the economy but inadvertently triggered a recession. This shift from optimism to economic hardship disrupted the prevailing sense of national unity and prosperity.