Slide 1

US HistoryMs. GonzalezOctober 20, 2016Aim: Why did Hamilton believe there was a need for economic reform?

Do Now: Read Article I, section 8 of the US Constitution and respond

What kind of power does that give our government?

[Congress has the power] To make all Laws which shall be necessary and proper for carrying into Execution the Powers vested by this Constitution in the Government of the United States, or in any Department or Officer thereof.

Turn & TalkWhat kind of power does that give our government? Think of specific examples.

The Elastic ClauseA statement in the U.S. Constitution (Article I, Section 8) granting Congress the power to pass all laws it considers necessary.

What are the pros and cons about the Elastic Clause?

Turn & Talk

When has the Elastic Clause been used?

Creation of a National Bank

Purchase of Louisiana Territory

Hamilton and the Federalists liked the elastic clause because they believed in a Loose interpretation of the Constitution.Believed in doing things even if they were NOT written on the Constitution.

If it doesnt say not to do it, then is OK!

Jefferson and the Anti-Federalists disliked the elastic clause because they believed in a Strict interpretation of the Constitution.Believed in ONLY doing the things that were written on the Constitution.

We must only do what the constitution says we could do

On April 30th 1789, George Washington took the oath to become the 1st president of the United States.

But. in 1789, the new nation experienced Economic Problems Nations finances were a disasterWar DebtsCitizens loaned money to the governmentState governments had their own wartime debts

Alexander Hamilton was the first secretary of the treasuryHis job was to fix the nations finances $$$.

Alexander Hamilton

Involved 3 steps:Paying the debtCreating a national bankRaising revenue ($$$)Whiskey taxProtective tariff Hamilton's Financial Plan

Task: In pairs, read the text to be able to respond

How did Hamilton fix the nations finances?

Why was it important for the United States to pay off its war debt?What benefit did the protective tariff give the American economy?Why did Hamilton think it was important to have a national bank?Who did Hamiltons Plan benefit the most?

How the Protective Tariff works

How the National Bank works

Who did Hamiltons plan benefit the most?