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Alexander Hamilton's Economic Impact On The United States

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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 …show more content…

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

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He promoted assumption of the states debt, which in turn, chained the states to the federal government and shifted the attachment of wealthy creditors. Though despite southern states protest, that it was unfair that some states received a free pass, since many of them had already paid their debt off, Hamilton’s plan was still approved. Hamilton went on to propose and create the Bank of the United Sates, The federal government ended up owning one-fifth of the bank, allowing them to control large sums of money, with little room for opposition on how and where it went. Despite Jefferson argument that there was no authorization in the constitution for such an economic octopus, Hamilton argued that the bank was not only necessary but also proper. This is turn evolved the theory of loose construction by invoking the elastic clause of the constitution- a model for enormous federal

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He envision the new banks and factories will generate more money to the new United States. First, he plans to consolidate both national and state debts and issue a new bond; which is loan given to government. Then issues new bonds. As a new government forms, they has the power to levy taxes on imported goods, whiskey tax etc to fund bonds. Hamilton took great advantage and make use of the new government power to pay off debts.

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Many states in the South had already repaid most of their debt and they wanted to restrict centralized power, they opposed the notion; while Northern states that were still carrying heavy debt loads supported the notion. He also pointed out the country incurred a debt as whole in order to secure their independence which is what lead to the creation of a federal government in the first place. The nation’s finances were a wreck due to the Revolutionary War. Hamilton understood that in order to win the respect of the citizens of the United States as well as foreign nations, he had to prove to them that the United States could be trusted and

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Jefferson and Hamilton’s ways of eliminating the debt were extremely different, and it is evident that the two men had shockingly different views for the United States of America. Alexander Hamilton was evidently, a man of the North. He believed in a more industrial way of making America prosper. Instead of a very individualistic way of achieving financial security, Hamilton believed in a collaborative flourishment, where businesses and companies could be established and prosper for the nation. With these ideas, Hamilton created a plan to pay off the federal debt and state’s debt.

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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.

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All through his book Gordon explains how the debt has influenced and shaped the history of America economy. Hamilton wanted to reshape the American economy, thus he proposed the virtues of the national debt claiming that when it is limited it may be a national blessing. While providing the audience with a history of the American debt, Gordon aims at proving Hamilton 's beliefs. Indeed, the author wants to show that if the debt is used wisely, it may turn out to be a useful political and economic instrument. To support the assertion that the budget deficit is not necessarily evil, he includes different events of the American history.

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The next step in the Secretary of the Treasury was the Introduction to the Report on the Manufactures on December 5 1791. This report is known and acknowledged in the book as one of Alexander Hamilton’s best work and I agree. In this report Hamilton encourages the House of Representatives to consider the industrialization of the United States. He states that “the embarrassments which have obstructed the progress of our external trade, have led to serious reflection of the necessity of enlarging the sphere of our domestic commerce” (Cunningham 68). In his report he states that manufacturing would improve “the division of labor, and extension of the use of machinery, additional employment to classes of the community not ordinarily engaged in the business, the promoting of emigration from foreign countries, the furnishing greater scope for the diversity of talents and disposition which discriminate men from each other, the affording a more ample and carious field for enterprize, the creating in some instances a new, and securing in all, a more certain and steady demand for the surplus produce of the soil” (Cunningham 70).

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He successfully argued for the assumption of state debts by the federal government and the establishment of the first national bank – a private, but partially government-owned institution. He firmly established the principles of financial trading. Due to his efforts, the creditworthiness of the United States was restored. Hamilton’s accomplishments as Treasury Secretary were not achieved without a struggle. His congressional opponents tried to exhaust him by demanding detailed reports on the workings of the treasury department with incredibly short delivery dates.

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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.

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Hamilton wanted to create public credit with a treasury system, a national bank, a mint, and increase manufacturing which would help unify the country. On the other hand, there was Jefferson, who opposed a strong central government. He argued that the “wealthy would gain at the expense of ordinary Americans and that Hamilton’s political economy would corrupt the morality of citizens and undermine the social conditions essential to republican government”(Powerpoint). The country would opt for an approach closer to Hamilton’s views. One of the first acts was the National Banking Act.

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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

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He knew that the debts of this country would prevent that show of strength as a country. Hamilton believed when a country is strong they are less likely to be over thrown by another country because they are seen as weak. His plan was to make the US responsible. It must pay off its debts. When a country is responsible the country can borrow money, and establish good credit.

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Alexander Hamilton had many accomplishments that he achieved during his life. One of his many accomplishments was the founding of the Bank of New York. In Teri Kanefield’s book The Making of America Alexander Hamilton says “, the Bank of New York opened its doors in 1784 as a private financial institution.”

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bank. Hamilton’s plan for a Bank of the United States also saw opposition from Jefferson. The model he used came from the Bank of England. His hope was that it would stimulate the economy, could make loans to the United States, would be a place for the federal funds, and would increase the supply of money. Thomas Jefferson, who was still Secretary of the State, believed the bank was unconstitutional.

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