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

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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

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