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President Andrew Jackson opposed Henry Clay's American System, which advocated for a strong federal role in the economy through protective tariffs, a national bank, and internal improvements. Jackson viewed the system as favoring elite interests over the common people and was particularly critical of the Second Bank of the United States. He took decisive action by vetoing the recharter of the bank in 1832 and withdrawing federal funds, which effectively dismantled Clay's vision of a centralized economic framework. This set the stage for a more decentralized and market-driven economy.

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