Every country in the world is greatly affected by the economy. This was also the case for the United States of America during the eighteenth century. There were many significant events that occurred during this time period. One of the most significant events was Alexander Hamilton’s economic plan which greatly affected America domestically. Assuming the debts of the states, creating a national bank, and increasing government revenue were all key aspects of Hamilton’s economic plan that greatly impacted the United States of America domestically.
To begin, assuming the debts of the states was one significant aspect of Alexander Hamilton’s economic plan. This was when the federal government took over 25 million dollars of debt that the states piled up over time during the American Revolution. During the Revolution, all of the states had debts that they had to pay off from the war. However, the effort that each state
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This bank was based on the Bank of England and had the ability to expand the money supply of the country since it was bigger than other commercial banks, by doing so it would increase economic activity. By having a national bank people were able to deposit taxes. This also meant that the United States had a secure currency which positively impacted the entire nation. The bank could also have the ability to issue bank notes and loan short-term funds to the government. Many people had mixed feelings about the bank. For example, Madison and other Virginians were concerned about the bank's location since it was located in Philadelphia. This meant that it would interfere with moving the capital. Other people like Hamilton and investors thought that the bank positively impacted the nation since the federal government and nation’s capital markets were more powerful and efficient. All in all, creating a national bank was another major aspect of Hamilton’s economic