Question

What benefits does Hamilton believe that individual citizens of the United States will accrue as a result of the establishment of such credit? What examples does he give?

Answer 1

• The basis was to build a strong national government at the expense of the states
• One of the goals was complete funding of the national debt. This would have helped the citizens of the US by a more accurate redistriution of wealth. This is because much of the wealth that was privately occupied by the rich few on the society at the expense of the state would slowly find its way into the government treasury and then be distributed through public works for the benefit of the entire society, especially the vulnerable groups.
• He also came up with the idea to establish the National Bank of the United States, which would help solidify the patnership of the state with the private businesses and further advance the cause a strong centre. For this, he quoted the example of the Bank of England.
• This would also serve as a proper way of regulating the currency and maintaining the required control over the monetary policy of the nation effectively.
• He also proposed the growth of infant industries and acknowledged the need for advancing their cause through various protective laws. This would greatly help the native and traditional Americans to develop their business and face the foreign competition. This was a great way to protect the domestic industries and keep the national income from being drained to other nations.
• He greatly quoted the Wealth of Nations by Adam Smith throughout his reports, criticising his idea of laisez faire or no government intervention. He was of the view that active intervention of the government was required in the matters of the economy.