What did Alexander Hamilton's economic plan call for the federal government to do?
Alexander Hamilton proposed an economic plan for the United States government to deal with its financial issues. He proposed combining the state debts with the debts of the federal government. New bonds would be issued, and tax dollars would be used to help pay the debts. This plan was accepted as part of a compromise. The southern states supported this plan on the condition the capital would be moved to an area of land that is now called Washington, DC.
Alexander Hamilton also proposed creating a national bank. He believed that creating a national bank would help deal with our financial problems and would help create a stable currency.
Finally, Alexander Hamilton believed we needed to protect our industries. As a result, he proposed establishing a protective tariff on imports, which would allow our industries to compete with European industries. The protective tariff would allow our industries to grow.
There were several parts of Hamilton’s financial plan.
Alexander Hamilton's economic plans called for a number of things. In general, the point of his plans was that the federal government should play an important role in creating a strong national economy. In order to achieve this, Hamilton called for the federal government to do such things as:
- Assuming all the debts incurred during the Revolution. He wanted this to include all the debts that states had run up.
- Imposing a tariff. This would get money for the government. It would also help protect American industries as they got started.
- Creating a national bank. He wanted there to be a national bank that could ensure that the currency would keep its value.
By doing these things, Hamilton felt, the government would create a positive environment for business in the new nation.