ipl-logo

Discuss Hamilton's Economic Plan And Why Were His Economic Policies So Controversial?

668 Words3 Pages

1. Discuss Hamilton's economic plan and why were his economic policies so controversial? Answer: By the early 1790's, Alexander Hamilton had written a Report on Public Credit and drafted a controversial plan for fixing the economy; because Hamilton’s plan required a loose of examination the Constitution's "Necessary and Proper" Clause. Right after the war had ended with the Paris Treaty of 1783, America was left in a bottomless financial turmoil. Debt, among states, were so high that the National Government was unable to pay off war bonds. Then when Washington became president in 1789, he called a ‘Cabinet’ together that composed of members like John Jay, James Madison, Thomas Jefferson, and Alexander Hamilton, this “cabinet was called to help Washington during his time in office. …show more content…

Hamilton decided that all the debts should be paid at face value, in hopes of taking them from the States and putting them in a new National Bank. Hamilton’s fellow workmates, Madison and Jefferson, did not believe Hamilton had the right to create a National Bank. Hamilton, then stated that his Bank would be covered by the "Necessary and Proper" Clause. This was a very loose interpretation of the Constitution, was supported by Federalists. Being Democratic Republicans, Jefferson and Madison agreed with a strict interpretation of this clause for a weak government. In result, Hamilton's plan led to our modern National Bank today, it as well led to a clear distinction between Federalists and Democratic Republicans. Hamilton’s plan did fix the economy, while

Show More
Related

  • Compare And Contrast Jefferson And Hamilton's Economic Plan

    327 Words  | 2 Pages

    A lot of nation’s investors found this alluring. It would also tie them to the new national government, since they would want that them to survive so they could get paid on their investment. Jefferson and Madison opposed Hamilton’s debt funding plan. They believed that

    Read More

  • The Controversy Between Hamilton And Jefferson Regarding The Bank Of The United States

    369 Words  | 2 Pages

    During the debate between Hamilton and Jefferson regarding the Bank of the United States, both used the elastic clause (Article 1, Section 8, clause 18) and the tenth amendment in the preamble as justification to their positions. When Alexander Hamilton presented his Report on a National Bank to Congress, he had specific proposals in his plan for his bank, which is what caused a great rift between Hamilton and Jefferson. The main proposals Hamilton had that was refuted by Jefferson were based along the lines of the worth of the bank's stock, the shares sold at a pricing of $400 per share, how the bank would be run by its elected board, and its ability to establish offices in other cities. The reasoning as to why Jefferson was so opposed to

    Read More

  • How Did Alexander Hamilton Affect The Formation Of The Second National Bank?

    3343 Words  | 14 Pages

    President Alexander Hamilton's research and economic theories had a significant influence on the formation of the Second National Bank. As the first Secretary of the Treasury under President George Washington, Hamilton played a crucial role in shaping the economic policies of the young nation. Hamilton's economic theories emphasized the importance of a strong central bank in promoting economic development and stability. He believed that a centralized institution could address the challenges faced by the fragmented banking system of the time and provide stable currency and credit facilities for businesses. In his influential "Report on the National Bank" in 1790, Hamilton argued for the establishment of the First Bank of the United States.

    Read More

  • How Did The Democratic-Republicans Change American Political Culture

    351 Words  | 2 Pages

    Jefferson and his supporters change the American political culture but retain most of Hamilton's economic plan. Even though Jefferson wanted to make an even smaller federal government. He repealed many of the takes Hamilton imposed. This allowed Jefferson to reduce the federal employees such as the tax assessor. He plans to fund government operations with tariffs from trading partners, not

    Read More

  • The Dinner Between Hamilton Pros And Cons

    558 Words  | 3 Pages

    Chapter 2: The Dinner June of 1790, Thomas Jefferson and Alexander Hamilton stood waiting outside Washington’s residence discussing Hamilton’s financial plan for the recovery of public credit, admitting that the government had halted it. Jefferson’s long time associate Madison was the one that was arguing that this financial plan would not be adopted, so in way of hoping to persuade Madison to consider it, Jefferson decided to host a dinner and invite them. Eventually, Hamilton convinced Madison not to dissuade his party members from supporting the financial plan.

    Read More

  • Democratic-Republicans Vs Federalist Viewpoints

    702 Words  | 3 Pages

    Even way back when the country was founded, there was a definite split between two political perspectives. The Federalists wanted to abolish the Democratic-Republicans, and vice versa. The huge differences that divided the two parties include, Who the country should be ruled by, state power in the union, how the constitution should be applied, alliance with countries in Europe, banks, and trade. Let's start with some basic background information. The Federalists were people who thought that the quarreling states could come together and make a perfect republic.

    Read More

  • What Is Alexander Hamilton Necessary?

    961 Words  | 4 Pages

    Alexander Hamilton, the first Secretary of Treasury of the United States, had a lot going for himself being a man that came from poverty to success, and he was a man “all powerful and fails at nothing which he attempts” admitted a congressman in 1791 (Tindall and Shi). Born in the Caribbean in the West Indies, abandoned by his father and orphaned at the age of 13 by his late mother who had died. Later moved to New York, became a lawyer and transitioned to nationalism thus giving him the important role of handling the weight of the debt America had accumulated $54 million deep after the Revolutionary War (Digital History). Hamilton saw the need for some financial credit to be given to America and he had the right idea by proposing a National Bank to his first president George Washington. Word dispersed of that proposal leading a

    Read More

  • Contrasting Views Of Thomas Jefferson And Alexander Hamilton

    1048 Words  | 5 Pages

    From 1794-1824, Thomas Jefferson and Alexander Hamilton had contrasting views on how the government and country should operate. Hamilton focused on fixing short-term financial issues through his Financial Plan by uniting the states under a national bank and creating protective tariffs to establish American manufacturing. Jefferson opposed many of Hamilton's ideas because he feared they would give too much power to the federal government. He encouraged farming and resisted Hamilton's belief in a strong manufacturing system. Both visions fought one another to gain favor, but one was more prominent overall.

    Read More

  • Hamilton's Dilemmas

    282 Words  | 2 Pages

    During the 18th century, the economy of the United states was practically underwater due to the very expensive war the U.S. had recently ended, known as the “Revolutionary War”. The enormous debt the U.S. acquired was hindering. Determined to make a change, Alexander Hamilton

    Read More

  • Slavery In Joseph J. Ellis's Founding Brothers

    946 Words  | 4 Pages

    The topic of the night was the national debt crisis. Alexander Hamilton, a strong supporter of federal assumption, and James Madison, a loyal Virginian, were among the guests of this carefully calculated soiree. Personal motivations of wealth and power guided their conversations. Hamilton’s economic plan was devised to benefit the urban elite, who were, in his mind, the keystone of American economics. States like Virginia that had managed to pay off large amounts of their debt, now risked being charged more in new taxes under Hamilton’s plan.

    Read More

  • Alexander Hamilton: The Most Important Figure In American History

    876 Words  | 4 Pages

    Hamilton nearly killed himself fulfilling these requests, but he did so brilliantly and completely, in turn exhausting congress going through them meticulously. He dazzled them with his brilliance and many were simply intellectually incapable of comprehending his plans. Not content to establish the customs service and the coast guard, and create a stable monetary system for the new government, Hamilton also dabbled in the affairs of state, much to the chagrin of Thomas Jefferson. He was once again an indefatigable assistant to Washington. Hamilton left the cabinet after Washington’s first term, returning to his New York law practice to repair his family finances, but Washington continued to rely upon him, as did many other cabinet members.

    Read More

  • The Views Of Alexander Hamilton And Thomas Jefferson

    651 Words  | 3 Pages

    If his idea were to pass, it would be owned by the government and ran the bank in order to regulate currency and help control the American economy. However, issues concerning “implied powers” arose when trying to legalize the bill for a national bank. “Government authority to create laws that were necessary to protect and help American people was the foundation of implied powers which Hamilton clearly supported because of his ideal to run an efficient government, one must pass laws to protect the people from corruption.” Flexibility and change were the basis of his argument in creating a stable government. In 1791, the bill for the development of a national bank was passed.

    Read More

  • Why Was The Constitution A Turning Point

    615 Words  | 3 Pages

    The ratification of the U.S. Constitution was not only a political turning point, but also an economic turning point in the history of the United States. This change in America was desperately needed because they needed stability following the war. The results of the ratification of the constitution were huge politically and economically in the sense it created a stronger central government, led to the Hamilton Financial Plan, and made the U.S. a more stable nation with more economic prosperity and opportunity. Politically, the ratification of the constitution was a big turning point for the U.S. because it formed a stronger central government.

    Read More

  • Similarities Between Jefferson And Hamilton

    1449 Words  | 6 Pages

    Hamilton 's monetary course of action for the nation included working up a national bank like that in England to keep up open credit; cementing the states ' commitments under the focal government; and initiating guarded tolls and government enrichments to empower American makes. These measures fortified the administration 's vitality to the hindrance of the states. Jefferson and his political accomplices limited these progressions. Francophile Jefferson expected that the Bank of the United States addressed an inordinate measure of English effect, and he battled that the Constitution did not give Congress the capacity to set up a bank. He didn 't assume that propelling produces was as basic as supporting the authoritatively settled agrarian base.

    Read More

  • How Did Alexander Hamilton Be An Economic Genius

    800 Words  | 4 Pages

    In this paper I will be discussing why I believe Alexander Hamilton to be an economic genius. Who is Alexander Hamilton?

    Read More

More about Discuss Hamilton's Economic Plan And Why Were His Economic Policies So Controversial?

Open Document