Hamilton vs. Jefferson

1. Hamilton vs. Jefferson

2. Overview on their beliefs… • Hamilton, being from the North , backed manufacturing, higher tariffs and business • Hamilton wanted a strong central government • Hamilton did not want people to have much power because he had little faith in the average person • Jefferson, being from the South , backed farming and lower tariffs • Jefferson wanted strong powers for the states • Jefferson believed that the people had the right to rule the country

3. Hamilton’s Economic Beliefs: Believed in higher tariffs , which would raise the price of foreign products

4. Jefferson’s Economic Beliefs: Jefferson worried about depending too much on business and believed that farmers were independent voters

5. Hamilton wanted to start a national bank where the government could safely deposit its money; thought the government should also build a national mint (a place to make coins) so that America could start printing its own money

6. Jefferson thought Hamilton’s plans for a national bank gave too much power to the federal government

7. Hamilton responded to Jefferson’s opposition by quoting the elastic clause , which states that Congress can “make all laws which shall be necessary and proper ” to govern the nation

8. Hamilton and Jefferson’s Interpretations of the Constitution • Hamilton believed in a loose constructionof the U.S. Constitution (federal government can take reasonable actions that the Constitution does not specially forbid) • Declared the elastic clause allowed for the creation of a national bank • Jefferson believed in a strict constructionof the U.S. Constitution (only do what the Constitution says – no reading between the lines) • Thought the elastic clause should only be used in special cases

9. President Washington and Congress agreed with Hamilton ; Bank of the United States – country’s 1st national bank (1791)