Alexander Hamilton : Economic Problems Facing The New Revolution

Another thing that Hamilton had done was fight through the revolution as George Washington's right hand man and he was able to, after fighting, fund the nation's federal debt. The writer states “great achievement was funding the federal debt at face value, which rectified and nationalized the financial chaos inherited from the Revolution” (history.com Para. 5). We can tell that he fought through the war, risking his life to help America and eventually help America, even more, afterwards. After going through a tough life so far he was able to also become the nation's first Secretary of Treasury, which deals with the nation's debt and credit which he helped create. It states in the article “As secretary of the treasury” (history.com Para. 5). This just simply shows that he was able to become the Treasurer. Hamilton in total was a very good man, nevertheless, he had cheated on his wife and kinda caused the death of his son helped form America and is very awesome.

In Cabinet Battle #1, Alexander Hamilton takes the position that the newly formed American should ignore their debt to France and start their own national banking system. He points out the fallacies in Thomas Jefferson’s and John Madison arguments via declaring that paying back America’s debt to France to profit made through the South’s agricultural economy was not the South’s hard work and was the product of slavery. When Thomas Jefferson and John Madison say that the South should not be taxed because there are the region which that greatly stimulate the economy, Hamilton points out that the nation is one and should be treated as one unit. Hamilton seems as if he is taking long-term plans for American into account.

3. What was Hamilton’s plan for debt reconciliation? Hamilton suggested funding the debt by selling government bonds, and further proposed that state debts be assumed by the national government. Why was Madison opposed to it? Madison believed that Hamilton's plan "was betraying the ideas of the American Revolution."

George Washington had recognized Hamilton’s leadership abilities and promoted him as Lieutenant Colonel. He was also an innovator of military design, where he designed reports on the defects and how there could be improvement in the military. While Hamilton was working as an adviser for Washington, Hamilton had come to realize the Congress' weaknesses, including jealousy between states, which he believed came from the Articles of Confederation (http://www.ushistory.org/). In 1782, Hamilton was convinced that establishing a strong central government was the key to achieving America’s independence.

Gordon sums up the American economic history in six chapters of his book. He explains that the United States had taken on huge debts following to the American Revolution. In order to pay such debts back, Hamilton created the federal bank and convinced the Congress to issue federal bonds. This way the federal government could make interest payments on time, build credit and keep the inflation from rising. Hamilton thought that the national debt could be a useful tool in order to create capital for the new industries. In his book, Gordon also recalls that soon after the 1812 War the seventh President of the United States cleared the government debts thanks to surpluses deriving from high tariffs. Then, he explains that the introduction of the first Federal income tax in America during the Civil Was turned out to be crucial in order to investigate how to distribute the tax

The states were in huge national debt to foreign nations and influential private citizens. Wealthy Americans and foreign nations loaned money to America for the Revolutionary War that summed up to about millions of dollars. Alexander Hamilton, the Secretary of Treasury, was in charge of strengthening the national government. Hamilton introduced the idea assuming all debts. This caused the Southern States to be enraged because most of them had already paid off their debt, and did not want to pay taxes to pay off the debt of Northern States. The states did not pay the taxes because the Articles of Confederation could not tell the state what to do. Alexander Hamilton proposed a Bank of America that would collect taxes and would be funded by U.S.

Before the Revolutionary War had occurred, many people were coming to the new colonies to start a new life; one of the people was Alexander Hamilton. He had come to the colonies after impressing people in the Caribbean and who then sent him to America to get a better education (“Alexander Hamilton”). Hamilton was an important figure in American history, but very few today remember who he was and what he did. Alexander Hamilton took a stand against traditional government by writing against and battling the British, fighting for the new U.S. Treasury, and arguing for the ratification of the U.S. Constitution.

Few Americans are aware of the profound impact Alexander Hamilton had on our nation’s development with his creation of multiple, important institutions. Hamilton, a true Founding Father of our nation, is primarily accountable for the design and establishment of Federal institutions, especially for the financial system which helped form the states into a nation. These creations of his helped put this nation on its path toward an industrial economy. Hamilton wanted a manufacturing economy founded on financial principles. He played a key role in shaping President George Washington’s foreign policy based on American self-interest.

Since we normally think of the “federal debt” as something bad, why did Hamilton think of it as something good and necessary for national welfare?

Due to the enormous expense of fighting the revolutionary war, America was in debt as soon as it became a country. Both the national and state governments had accumulated large amounts of debt in the war effort. As the first secretary of the treasury, Hamilton had the responsibility of paying off the national debt, which was about $11.7 million to other countries and about $40.4 million to U. S. private citizens. In addition to the national debt, the state governments had also accumulated around $25 million of debt. In order to raise money during the war, the United States government sold bonds with the promise of buying back the bonds at a higher rate in the future. However, following the war the government was unable to fulfill that promise to the bond holders.

Alexander Hamilton was one of the founding fathers of the United States. Hamilton originally arrived in New York in 1773, having been sent there for an education. These early days helped shaped Hamilton’s political views as he was drawn less towards his studies and more towards politics. At the time he arrived in New York, the American Colonies were on the brink of a revolution. His main political and economic goals centered on having a strong central government. Hamilton used both writing and political sway to attempt to achieve this goal.

Another intriguing fact is that Hamilton, supporting a strong central government, insisted that the U.S. government pay its debts in full and pay off the national debt entirely. Today the allocation of the central

Hamilton saw this as an opportunity to create the country 's government credit, pay off finally

Hamilton left the military in 1781. He had recently married Betsey Schuyler, and worked diligently for several months to pass the New York bar exam. Hamilton served as one of New York's most prominent lawyers in the early 1780s, and also began his political career, serving first as a national tax agent, and then as one of New York's representatives at the national Congress in Philadelphia. In 1786, Hamilton was chosen to represent New York state at a national convention held in Annapolis, Maryland, to amend the Articles of Confederation. When only a few of the delegates from the other states bothered to attend, Hamilton called for a second convention to be held in Philadelphia in 1787. This time, the delegates took the invitation more seriously, and created the outline for a new government by drafting the Constitution.

Unless America makes a decision on how to solve the nation’s debt, it will never be able to recover and advance. Washington followed Hamilton’s plan by paying the full amount of debt and focusing on the self-interest of the elites (Locks et al., 438). Our country needs stability in order to begin paying off its massive debt. The elites are the economic foundation because through their wealth the nation would recover. Also, Hamilton wanted to create the Bank of the United States, which would facilitate the payment of federal taxes and tariffs (Locks et al., 440). A national bank would establish the groundwork on which states could then build their own state banks. Once the national debt is solved, then the country can solve other issues—states and citizens’ debt. By following Hamilton’s plan, America would build credit as a nation because then other countries and American citizens would trust the government that kept its obligations. Finally, by taking the burden off of the states, the states in response will pledge allegiance to the national government (Locks et al., 438). When states abandon their independent statehoods and come together to form a community—central government—then America can operate smoothly and more efficiently. Overall, America’s debt is a major issue for both the government and its citizens, and through Hamilton’s plan, America can solve this issue and persevere.