Explain what brought about the economic depression of the late 1830s and the emergence of the Whig party.

The economic depression of the 1830s occurred because of a series of poor decisions made by Andrew Jackson and state banks. Andrew Jackson disliked the national bank and, in 1832, vetoed the extension of its charter. However, the national bank’s charter ran until 1836, meaning the bank would continue to exist for the next four years. To reduce the effectiveness of the national bank, President Jackson deposited federal funds in state banks (also called "pet banks"). These banks had more lenient lending policies, and many Americans went to get loans from these banks in order to buy western land.
When Andrew Jackson realized that the speculation in western land was getting out of control, he issued the Specie Circular, which stated that land sales had to be made with gold and silver. However, this policy wouldn’t take effect until after the election of 1836. Once the policy went into effect, the economy slowed significantly, in part because people didn't have access to gold and silver.
The Whig Party emerged to challenge Andrew Jackson, whom they referred to as King Andrew. This party disliked Andrew Jackson’s policies toward the national bank and disliked how he ignored decisions of the Supreme Court. When the economy slumped in 1837, Martin Van Buren followed a laissez-faire policy regarding the government’s role in ending the depression. As the depression lingered, people grew frustrated with Van Buren’s hands-off policy. The Whig Party, on the other hand, wanted the federal government to take steps to ease the effects of the depression. These steps included re-establishing a national bank, passing legislation to provide relief for the American people, and giving a portion of land sales to the states. The willingness of the Whig Party to try to do things to help end the depression helped them win the presidency in 1840.

The Panic of 1837, one of the largest economic depressions in American history, was caused when Andrew Jackson did not renew the charter of the Bank of the United States. Instead, he put money into state banks which curried his favor.  These state banks made bad loans and right before the Panic there was a bubble in land speculation.  When the bubble burst, the economy crashed and people blamed Martin Van Buren, Jackson's handpicked successor, even though it was due to Jackson's fiscal policies.  
The Whig Party started because of Jackson's use of the veto.  Jackson issued more vetoes than any president before him.  They resented that Jackson did not want to use federal dollars on internal improvements.  The Whig Party formed in order to create what would be called the National System, so the nation would become more self-sufficient with tariffs and a national infrastructure.  They also resented Jackson's campaign strategists, who tried to appeal to the common man through parades and barbecues.  Additionally, they resented Jackson's use of what would be called the spoils system, a practice in which Jackson would reward those who helped him win.  The Whig Party would adopt the spoils system for its own use and adopted many of the campaign strategies that they hated about Jackson.