Alexander Hamilton Economic Problems, Financial Plan, & Interpreting the Constitution.
Transcript of Alexander Hamilton Economic Problems, Financial Plan, & Interpreting the Constitution.
Alexander Alexander HamiltonHamilton
Economic Problems, Economic Problems,
Financial Plan, Financial Plan,
& Interpreting the & Interpreting the ConstitutionConstitution
Economic ProblemsEconomic Problems
Nation’s finances a wreckNation’s finances a wreck War DebtsWar Debts Private citizens loaned money to the Private citizens loaned money to the
governmentgovernment State governments had their own State governments had their own
wartime debtswartime debts US debt in 1789 = $52 millionUS debt in 1789 = $52 million
Current US debt
Economic ProblemsEconomic Problems
Must repay debts to win the respect Must repay debts to win the respect of both foreign nations and its own of both foreign nations and its own citizenscitizens
Demonstrate responsibility with Demonstrate responsibility with moneymoney
Could hamper lending relations in Could hamper lending relations in the futurethe future
Hamilton’s Financial Hamilton’s Financial PlanPlan
Believed in a strong central Believed in a strong central governmentgovernment
National government > State National government > State governmentsgovernments
Government should encourage Government should encourage business and industrybusiness and industry
Strived to get wealthy merchants Strived to get wealthy merchants and manufacturers on his sideand manufacturers on his side
Hamilton’s Financial Hamilton’s Financial PlanPlan 3 Steps3 Steps
Pay off all war debtsPay off all war debts Raise government revenuesRaise government revenues Create a national bankCreate a national bank
Wanted National government Wanted National government to pay off the war debts of to pay off the war debts of the statesthe states Most southern states had paid Most southern states had paid
theirs off and did not want to theirs off and did not want to help northern states to pay off help northern states to pay off theirstheirs
Compromise – the nations Compromise – the nations capital would be located in the capital would be located in the SouthSouth
Hamilton’s Financial Hamilton’s Financial PlanPlan
Favored tariffsFavored tariffs Tax on imported goods, such as shoes and Tax on imported goods, such as shoes and
textilestextiles Benefits of tariffsBenefits of tariffs
Raises money for the governmentRaises money for the government Encourages growth of American industryEncourages growth of American industry
Create a national bankCreate a national bank Safe place to keep moneySafe place to keep money Issue loansIssue loans Issue bank notes – paper money that could be Issue bank notes – paper money that could be
used as currencyused as currency
Interpreting the Interpreting the ConstitutionConstitution
Not all people were in agreement Not all people were in agreement with Hamiltonwith Hamilton
Jefferson and Madison believed the Jefferson and Madison believed the Constitution discouraged a strong Constitution discouraged a strong central governmentcentral government
The meaning of the Constitution was The meaning of the Constitution was debateddebated
Interpreting the Interpreting the ConstitutionConstitution
Jefferson’s and Madison’s argumentJefferson’s and Madison’s argument Strong interpreters of the ConstitutionStrong interpreters of the Constitution
Strict construction – narrow or strict interpretationStrict construction – narrow or strict interpretation Hamilton – loose construction – broad or flexible Hamilton – loose construction – broad or flexible
interpretationinterpretation Government did not have the power to set up a Government did not have the power to set up a
national banknational bank Hamilton wins in Washington, and the Hamilton wins in Washington, and the
National bank is createdNational bank is created video
Political CartoonPolitical Cartoon
Imagine you oppose or support Imagine you oppose or support Hamilton’s plan for the nation’s Hamilton’s plan for the nation’s finances. Draw a political cartoon, finances. Draw a political cartoon, in color, expressing your opinion. in color, expressing your opinion.
IdeasIdeas National bankNational bank DebtDebt TariffsTariffs Interpretations of the ConstitutionInterpretations of the Constitution