Final answer:
The statement that the Panic of 1819 increased the American people's faith in the Second Bank of the United States is false. The Panic caused distrust in the bank, and bailouts during financial crises led to public discontent and skepticism about the Second Bank's management and its impact on free-market principles.
Step-by-step explanation:
The assertion that the Panic of 1819 increased the American people's faith in the Second Bank of the United States is false. The Panic of 1819 led to widespread economic distress, distrust in financial institutions, and skepticism about the Second Bank's effectiveness. Critics like Libertarians argued that businesses making poor investments should face consequences, similar to families overwhelmed by debt. Moreover, bailouts to major banks during financial crises were seen as rewarding failure versus success, causing populist anger and concerns over perceived socialist tendencies of government intervention. The financial practices and bailouts during crises demonstrate recurring tensions between free-market principles and governmental intervention in the economy.
As for the criticism against the Second Bank by figures like Andrew Jackson, it was charged that the bank concentrated too much power in the hands of the privileged, contradicting the charge that it was a tool of the Democratic Party or that it failed to meet its financial obligations.