What was Thomas Jefferson's view on the economy?

Thomas Jefferson's view on the economy of the new United States was that the federal economy should be kept "rigorously frugal and simple." He envisioned the states being able to run their own economies with minimal interference from Washington policy makers, and he opposed the establishment of a central bank.

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Thomas Jefferson wanted a federal economy that was "rigorously frugal and simple." He believed in states' rights and envisioned states being able to run their own economies with minimal interference from the federal government. He wished to maximize individual autonomy so that people could keep the profits they made. He also envisioned the United States as primarily an agricultural economy made up of small farmers who would thrive best with the least interference from a central authority.

Jefferson sharply opposed Alexander Hamilton's plans for the government to pay off the states' debts and to establish a national bank. The bank Hamilton envisioned would serve as a repository for federal taxes and provide a hard currency (gold) to back up paper money. Hamilton's plan was to make the new nation more secure by tying the states more closely to the federal government.

Jefferson disliked this big-government approach to the national economy. He objected to low-debt states like his own subsidizing New England's debts. He feared the individual states would lose economic flexibility if they were too closely tied to Washington.

Jefferson did not foresee that the United States would develop a primarily industrial economy over time that would benefit from a strong, centralized government. He lost most of his battles over the national economy, but his small government vision has remained an important force in politics.

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Thomas Jefferson had several views regarding the economy. He believed the federal government should play a very limited role in the lives of the American people. This included having a limited government role in the economy. Thomas Jefferson got rid of unpopular taxes, such as the tax on whiskey. He reduced the size of the army and prevented the navy from expanding while he was president. He was opposed to Alexander Hamilton’s financial plan creating a national banking system, because he believed it was against the Constitution and because it increased the role of the federal government in the lives of the American people.

Thomas Jefferson was willing to take actions to protect Americans even if those actions hurt the American economy. The passage of the Embargo Act in 1807 was designed to protect American merchants whose ships were being attacked by France and by Great Britain when these countries were at war with each other. This law prevented Americans from trading with other countries. However, it eventually had to be replaced because the economic effects adversely impacted the American economy and the American people.

Thomas Jefferson favored policies that helped American farmers. He saw the United States primarily as an agricultural country and wanted farmers to be successful. He generally opposed protective tariffs, as he believed they negatively impacted farmers.

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