Section 2: Hamilton and National Finances Assessment

What economic problems did the new government face? The new government was in great debt. They owed $40.4 million to U.S. citizens, $11.7 million to foreign countries, and $25 million to the states.
What compromise did Alexander Hamilton, Thomas Jefferson, and James Madison reach regarding repayment of the states debt? In return for support of Hamilton’s Assumption plan, the new U.S. capitol would be on the Potomac River.
What disagreement did Jefferson and Hamilton have over the central government? Hamilton believed in federal government power whilst Jefferson believed in state power.
Hamilton was a New Yorker, while Jefferson was from Virginia. How do you think that affected their views on economy? Hamilton favored trade being from New York, and Jefferson favored agriculture because he is from Virginia.
Do you agree with Hamilton or Jefferson regarding the average citizen’s ability to make decisions for the country? Explain your answer. I agree with Hamilton because if citizens had the ability to make decisions for the country, it’d be a mess.
Why did Jefferson oppose the creation of the Bank of the United States? Jefferson opposed the idea of a national bank because he thought it gave the federal government too much power.
What is the difference between loose construction and strict construction of the Constitution? Loose construction means that the federal government can take reasonable actions that the Constitution does not specifically forbid. Strict construction, people should follow exactly what the Constitution says to do.
Defend Alexander Hamilton’s stance in favor of the creation of the national bank. Well the U.S. needed somewhere to store it’s money and a national bank was a perfect solution.

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