Question

Briefly summarize Hamilton's economic policies. What were the goals of these policies, and why were they controversial (who opposed them and why?)?

Answer 1

HAMILTON'S ECONOMIC POLICY

In the year 1789, congress created Department of Treasury. Alexander Hamilton was appointed as the first Secretary of the Treasury by the President George Washington.

During the year 1790 and 1791, Hamilton came up with a marvelous plan of econonic nationalism. He had intensions of solving the economic problems that had sickened the econony of the United States since the American revoulution.

His plan had had several central elements;

1. FOREIGN DEBTS: The first goal was to pay off the loan in full that the foreign government made to the Continental Congress during the American revolution. In 1790 the principal amount of these loans was roughly 10 million dollars and the state owned to France, Netherlands and Spain. Hamilton wanted the federal government to pay these loans out of the tax revenues and also wanted the United States to borrow over a 15 year period which was enough capital to pay off the principal amount.

This was controversial because the United States had a legal and a moral obligation to pay these debts off and they had to do it so that they can establish credit of U.S and also it's citizens in European financial market.

2. DOMESTIC DEBTS : This was the second element and it was more controversial, Hamilton's proposed this element to pay off the debts which the Continental Congress and Confederation government had incurred by borrowing from American individuals and American states.

3. DEBTS OF THE STATES

4. TAXATION

5. THE BANK OF THE UNITED STATES

6. THE MINT

7. PROMOTION OF MANUFACTURING

In 1971, Hamilton had proposed a federal excise tax on production, sale and consumption on a number of goods which also included whiskey.

Jefferson opposed Hamilton's policy for the federal government to pay domestic and state debts because he thought it was not fair to the Southern farmers who were forced to sell their bonds to the Northern speculators during difficult economic times.