Transcript Do Now To what extent did Hamilton`s policies strengthen the new

Do Now
To what extent did Hamilton's
policies strengthen the new
nation? What were the most
significant concerns of his
Republican opponents?
Tuesday- Agenda
 Do Now and Discuss 10-15
 What did the Federalists and Dem-
Republicans stand for? What effects did
Federalist policies have on the nation? (30)
 Overview of presidencies (5-10)
 Case study: The Whiskey rebellion (35)
 Exit Ticket/HW: Letter to Hamilton or
Jefferson
Unit 4: Birth of the First Political
Parties
Unit Focus Questions:
What challenges did the new
nation face?
What features of the political
system enabled it to overcome
these challenges?
Lesson 2: Domestic challenges
Major Questions:
 How did Thomas Jefferson’s and Alexander
Hamilton’s visions of the new nation conflict with
one another?
 How did the nation’s first political parties reflect
the ongoing struggles of a new and unstable
nation?
 How did the new nation deal with internal
challenges, like the Whiskey Rebellion?
Hamilton vs. Jefferson
Stability & Efficiency
vs.
Equality & Democracy
National Debt
 Hamilton/Federalists
 Pay off National Debt-
interest
 Pay off foreign debt
immediately
 Pay off citizens over time.
 Old state bonds now held
by speculators - Hamilton
wanted to pay full face
value of the bonds to the
speculators as they took
the risk
WINNER!
 Jefferson/Republicans
 Opposed
Hamilton’s plan
about paying
speculators.
 Idea cheated the
original
bondholders who
sold at low prices.
Hamilton as Congress agreed with his ideas
State Debt
 Hamilton/Federalists
 Federal government to
 Jefferson/Republicans
 Southern states did
pay for the major part of
not like the idea as
the debt - the states pay
they did not have
for the remainder.
much debt.
 Strengthened federal
 Southern states did
gov’t authority
not like the capital
being in New York City.
 Re-started the flow of
capital
 Jefferson and Madison
agreed.
 Made the US a more
attractive place for future  Compromise of 1790
investment
WINNER! A Tie! Hamilton received debt plan. Jefferson the
capital moved to present day Washington D.C.
People/Government
 Hamilton/Federalists
A strong central
government.
 Jefferson/Republicans
 Powers of the states
should be protected
from power of central
government.
 Hamilton had little faith  Only the people could
be relied on to reserve
in the common person
liberty, so education
making informed
was key so they could
decisions about
make necessary choices
government.
about their
government.
Taxes/Economy
 Hamilton/Federalists
 A Protective Tariff to
cause Americans to buy
American made goods.
Mercantilism?
 Taxes to provide money
for subsidies to
industries.
 Believed that
manufacturing and
business would be the
best economic engine
for America.
 Jefferson/Republicans
 Lower tariffs help
farmers - keep the
price of imported
goods low.
 Agriculture/farming
would be the best
economic engine for
America.
 Distrusted business
and manufacturing as
a threat to his
“agrarian” vision
The National Bank: A question of
Constitutionality
 Hamilton/Federalists
 Lends money to
businesses.
 National Mint to make
national currency.
 Also encouraged each
state to start a bank.
 Necessary and proper
clause in the
Constitution implies the
Bank is OK
 LOOSE
CONSTRUCTION.
 Jefferson/Republicans
 Jefferson and Madison
opposed the idea of a
National Bank.
 Did not think the
Constitution gave
Congress the power to
create a bank.
 “Necessary and proper”
clause was for special
use only
 STRICT
CONSTRUCTION.
“Elastic Clause” aka – “Necessary
& Proper clause”
 Article I, Section 8,
 The Congress shall have Power ... To make
all Laws which shall be necessary and
proper for carrying into Execution the
foregoing Powers, and all other Powers
vested by this Constitution in the
Government of the United States, or in
any Department or Officer thereof.
Amendment X
“The powers not delegated to the
United States by the Constitution,
nor prohibited by it to the states,
are reserved to the states
respectively, or to the people.”
US Economic growth 1790-1820
Year
Nominal GDP (million of
Dollars)
Real GDP (millions of 2009
dollars)
Population (in thousands)
1790
189
4,351
3,929
1795
383
6,436
4,563
1800
480
7,994
5,297
1805
561
9,619
6,180
1810
706
11,481
7,224
1812
786
12,482
7,651
1813
969
13,192
7,867
1814
1,078
13,744
8,085
1815
925
13,855
8,308
1820
710
15,574
9,618