Alexander Hamilton

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What was Alexander Hamilton's fear?

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Alexander Hamilton feared that a weak federal government would hinder America's economic development and global standing. He was concerned about the limitations of the Articles of Confederation, which restricted the federal government's ability to levy taxes, raise funds, and manage debts. Hamilton believed that a strong central government and a federal banking system were essential to establish financial stability, facilitate commerce, and ensure the United States could defend itself and be taken seriously as an economic power.

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Alexander Hamilton was concerned that America would not develop as a modern, industrialized economy. He felt that if the United States retained a system of government in which ultimate sovereignty resided with the states, then the country as a whole would not progress economically.

If the United States was to take its place in the world economy, Hamilton thought, it needed to have the requisite institutional framework in place, such as a strong central government and a federal banking system. The latter was especially crucial for Hamilton's vision, as it would oil the wheels of commerce, proving loans to help businesses get started. A federal banking system would also enable the United States to pay off the enormous debts it had accrued during the Revolutionary War. This would show that the new Republic could be taken seriously as an economic power. Paying off the national debt would also enhance America's...

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credibility as a country with which to do business.

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One of Alexander Hamilton’s biggest fears was having a weak federal government. He saw the struggles that the federal government had with the plan of government that was created by the Articles of Confederation. He knew it was hard for the federal government to raise money and to pay its debts because the federal government couldn’t levy taxes. He knew the financial stability of the country suffered, because there was no national banking system. As a result, states printed money, which caused inflation. He also was concerned about the federal government’s ability to protect and defend itself because the federal government couldn’t require people to join the military. This is partially why the federal government was unable to deal with aggressive actions toward the United States by Spain and Great Britain.

Alexander Hamilton feared the new federal government created by the Constitution might not have enough power to resolve these issues. This is why Alexander Hamilton and the Federalists wanted to create a strong federal government when the Constitution was being written.

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