The Jeffersonian Principles Of Strict Construction

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Although the Jeffersonian beliefs of strict construction and the inherent efficiency of capitalism allow for short term economic gain due to the minimal inefficiencies in the market and political system, the Hamiltonian ideologies of a strong central government and bank (more here? And implied powers), especially regarding the state of the United States economy at the time, are more effective in increasing long term economic growth and the quality of life of the nation’s citizens. However, a balance must be struck between the two polar principles in order to control inflation and maintain long term economic growth, which includes eliminating tariffs but installing subsidies that target specific markets and restraining the overexpansion of credit.
- Give a very specific guideline: Interest rates, Debt, No tariffs, Bank of the United States
The creation of a central bank in the United States is necessary to increase the liquidity of the economy and to stabilize the debt ridden nation, which ultimately promotes stable economic growth and the fiscal independence, given the financial situation at the time. After the American Revolution, debts incurred by individual states amounted to around $18 million causing widespread uncertainty. Such a crisis threatened to destabilize the region as some states, such as Virginia, had already nearly liquidated their state’s bonded indebtedness, and did not want to pay yet again. Congress had issued large amounts of continentals, fiat money,
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