The Federalist Alexander Hamilton's National Bank was deemed unConstitutional by a Republican controlled Supreme Court and is never brought to fruition. In the Jeffersonian era, the two Presidencies of James Madison and Andrew Jackson further limited what the national government was allowed to do, slowly turning the federal republic of the United States into a confederate republic. The Second Great Awakenings further strengthened the Protestant/Puritan work ethic and the free enterprise system of economy.
The War of 1811 against British-controlled Canada turned into a decade-long cold war. Frought with other military matters elsewhere in the world, particularly with Napoleon, the British Empire decides to sell Canada to the United States. This passes in the Senate, and the United States more than doubles its area in size. Canada is split into about ten territories for future statehood. Quebec's application for statehood is quickly accepted.
A Mexican War, made famous because of the defense in Alamo, gave the United States the whole of Mexico, divided into 5 territories and Texas, which are now states. There is talk of an "American Empire" in other parts of the world, especially in Europe.
The slave issue was relegated an issue of the state government by the federal government. The Union is preserved through political manuevering, though tensions are still high. However, Civil War was averted, and the North largely ignored the slavery in the South to avoid raising tensions. This show of power by individual states make some term the states "sovereignties", and sometimes "Sovereignties", to show that they now hold more sway over their areas than the national government and thus countries in their own right.
The reason for that the Civil War being averted is a force that has been gaining tremendous power in the North: the corporation. A result of advanced and unfettered capitalism, the North entered a state of technological advancement the world had never seen before. The South struggled in its dated agriculuturally-based economy. But the free enterprise system is not only limited in the North. Soon, entrepreneurs all over the South built corporations of the Industrial Age. The slave owners gradually lost power over time.
The aerocraft, a flying steam vehicle, was invented in 1854. It became a tool for exploration of the expansion. In 1860, electric generators now generated power to the growing Northern cities. In the South, each plantation came to have their own electric generator to operate machinery.
On April 15, 1865, because of the speeches of Lincoln, all Southern states abolished slavery, except as a method of criminal punishment. Slaves were no longer needed for the most part, efficient farming machinery operated by a one person became widespread. Steam tractors and plows multiplied the South's agricultural output. In turn, more and more of the populace began to dwell in the urban areas.
In 1867, Karl Marx publishes "Das Kapital". But he praises what Capitalism has done instead of degrading it, as in this timeline. He inspires a generation of radical entrepreneurs. Karl Marx dies a rich factory owner.
The more industrilized nation began expanding in three prongs: northwards to Canada, southwards to Mexico, and westward to the untamed wilderness. City building is rapid and accompanied by quick advances in technology. Needing a communications network between their polises, the corporations of the sovereignties built telegraph and the newly-invented telephone networks.
As the corporations grew in power, it was just logical that their power structures limit the governments. In 1878, the United States national government was incorporated(jokingly referred to as "U-dot-S-dot-A-dot-Inc" or "U.S.A.Inc"). It still functions as a intermediary between state governments, and the sovereignties maintained the power in their borders. The incorporated National Government is still the only power legally able to perform diplomatic relations with foreign nations, inter-state law enforcement, and since it is incorporated to make profits, no taxation. The government is now run by the citizens as they invest in it as any corporation.
The voting system is overhauled. All citizens can still vote for the House of Representatives and the electoral college for the President, however, the Senate is voted on by investing in government stock. The electoral college votes using the sovereignties investments and stock in the government for the President.
Afraid of the rapid technological change, the Neo-Luddite Party is formed. Initially, their main base of support are farmers. They prove to be unpopular in the long run as they turned radical. They are responsible for some terrorist acts.
By 1884, Europe is fraught into a war by pro-Capitalists and pro-Socialist groups.