What was Alexander Hamilton’s plan for the Economy?

1. What was Alexander Hamilton’s plan for the Economy? 7-2 Pgs. 238-242

2. Hamilton’s Basic Economic Plan • Deal with the National Debt • Gain Revenue for the United States • Stabilize the U.S. Banking system

3. 1. Deal with the National Debt • The United States owed 11.7 million to other countries and 40.4 million to citizens • Hamilton wanted to pay off debt to foreign countries first • Gradually repay debt to citizens who bought bonds • Bondholders who sold their bonds would lose out on $ • The federal government would absorb each states debt. • Only if capital moved farther south

4. 2. Gain Revenue for the United States • Pass a high tariff to both bring in money and help American manufactures and cause Americans to buy American made goods • Promote the creation of new American business that would compete with European manufacturing

5. 3. Stabilize the U.S. Banking system • Create a national bank for the government to deposit money to • No specific power given to the federal government to create a bank in the Constitution • Create a National Mint to issue own money • 20 year trial • Each state start its own bank