Transcript What was Alexander Hamilton’s plan for the Economy?

What was Alexander Hamilton’s
plan for the Economy?
7-2
Pgs. 238-242
Hamilton’s Basic Economic Plan
1. Deal with the National Debt
2. Gain Revenue for the
United States
3. Stabilize the U.S. Banking
system
1. Deal with the National Debt
• The United States owed 11.7 million to other
countries and 40.4 million to citizens
• Hamilton wanted to pay off debt to foreign
countries first
• Gradually repay debt to citizens who bought
bonds
– Bondholders who sold their bonds would lose out on
$
• The federal government would absorb each
states debt.
– Only if capital moved farther south
2. Gain Revenue for the United States
• Pass a high tariff to both bring in money
and help American manufactures and
cause Americans to buy American made
goods
• Promote the creation of new American
business that would compete with
European manufacturing
3. Stabilize the U.S. Banking system
• Create a national bank for the government
to deposit money to
– No specific power given to the federal
government to create a bank in the
Constitution
• Create a National Mint to issue own
money
• 20 year trial
• Each state start its own bank