The chapter discusses how the Early Republic government influenced economic development at the state level. It looks at different strategies like Clay's American Plan and Jackson's reactions. The use of tools like tax breaks and eminent domain is explored. The chapter also talks about the importance of transportation and urban infrastructure, as well as the role of banking and manufacturing. The corporate charter was a key tool in this development, but it was eventually replaced by the modern corporation. The construction of roads, canals, and railroads played a big role in economic growth. The chapter ends by discussing the impact of the 1868 Dillon's Law decision on city-state relationships.