Post on 14-Dec-2015
transcript
Chapter 10.2 Alexander Hamilton vs. Thomas Jefferson
Hamilton wanted a government strong enough to fix America’s problems…
Thomas Jefferson trusted the people to fix their own problems…
Now that President Washington is in office…
• It’s time to fix the economy
• What’s the problem?– Our government had a national debt of $81.5
million dollars!• Amount of $ owed by our country to other people
– Foreign countries– Citizens we borrowed money from
– What happens if we don’t pay these people back?
Debate over settling the debtAlexander Hamilton
• Wanted to pay back all bonds sold to citizens over time!– Bonds = certificates purchased
that can be turned in for more money in the future
– Why did Hamilton want to do this? • Government gains credibility
with the people
Thomas Jefferson
• Ok with Hamilton’s ideas, but there is a problem:– Speculators have bought bonds
from citizens for less than they are worth! • Now the government is going to
buy them from the speculators for full price? – That cheats the original owner
out of money!
• Who wins? – Hamilton!
• 1790 Government starts buying bonds back!
Debate over Paying off debt owed by States from the American Revolution
Alexander Hamilton• Argued that government
should pay states debt off
• Why? – We all fought for freedom.
• So, our federal government should pay the bill.
• So who wins? – Both….sort of.
Thomas Jefferson• Felt each state should pay
back their part of the bill
• Why? – Some states owed a lot!
• Massachusetts• New York
– Some did not owe much at all• Virginia• North Carolina
They both get something in the end.
Hamilton• Federal government pays
off the states debt.
• In exchange for….
Jefferson • The nation’s capital moves
from the North to a more Central location….
– The birth of Washington, D.C. • Will be built as the new
nation’s capital!
Debate over Role of GovernmentHamilton • Had little faith in the average
citizen– Said they could not be trusted
to do the right thing.
– Why? • Because the average American
does not take education seriously– They take politics even less
seriously
• So, you need a large government– Job = protect the liberties of all
citizens equally
Jefferson• Had a lot of faith in the
average citizen– Said they should govern
themselves
– Said they would educate themselves and do what is right
• So, government needs to be small– Job = stay out of the way
Debate over how the Economy should grow
Hamilton • Government should give
“stimulus” money to American entrepreneurs – Why?
• So they could start their own factories and businesses– Hire people– Make products here in USA
• Government should pass protective tariffs– Tax on goods from other
countries
Jefferson• Government should stay out
of the economies way– Why?
• America is made up of farmers!– They know how to do it
themselves! » Don’t need any help!
• Tariffs should remain low– Why?
• Keep price of goods lower. – Helps citizens be able to
afford them
Debate over a national bankHamilton • Wanted to start a national
bank.– Why?
• So that the government can make their own money– No more state money
• What is the big deal? – Federal government would own
all of the money in America! – Not each individual state
Jefferson• Hated the idea of a national
bank– Why?
• Some states are richer than others– They would lose this power if
the federal government owned all of the money
• What is the big deal? – The Constitution does not give
the government the right to make a bank anyways….• Or does it?
What does the Constitution say?
• Article I, Section 8– Congress has the right to
“make all laws that are necessary and proper”
• Hamilton (loose)– Says a bank is necessary for
future growth as a nation
• Jefferson (strict)– Says a bank is convenient
• Not necessary
Who wins?
• Washington agrees with Hamilton…again.
• Bank of the United States– Created in 1791
• For 20 years– If it works we will keep
it longer» If not, we get rid of
it.
Meanwhile…
• While America is trying to build itself into a great country….– A great country is trying
to destroy itself….
• 1789– France decides to have
their own Revolution• Replace their monarch with
a democracy like America….