Title: Hamilton’s Economic Policy | Boundless US History
Headings: Hamilton’s Economic Policy
Hamilton’s Economic Policy
Hamilton’s Legacy
Learning Objectives
Key Takeaways
Key Points
Key Terms
Hamilton’s Political Vision
Background
Constitutional Convention and Ratification
Hamilton’s Programs
The National Bank
Opposition
Lasting Legacy
Hamilton’s Economic Policy
Learning Objectives
Key Takeaways
Key Points
Key Terms
Hamilton in Brief: Secretary of the Treasury
A Contested Repayment Strategy
The First National Bank
Other Economic Programs
Promoting Economic Development
Learning Objectives
Key Takeaways
Key Points
Key Terms
Financial Difficulties of a New Nation
Advances in Manufacturing
The Whiskey Rebellion

Content: Hamilton’s Programs
In the aftermath of ratification, George Washington became the first President of the United States in 1789 and appointed Hamilton as Secretary of the Treasury. In his new role, Hamilton continued to expand on his interpretations of the Constitution to defend a series of proposed economic policies. The United States began to become mired in debt. In 1789, when Hamilton took up his post, the federal debt was more than $53 million, and the states had a combined debt of around $25 million. The United States had been unable to pay its debts in the 1780s and was therefore considered a credit risk by European countries. Credited today with creating the foundation for the U.S. financial system, Hamilton wrote three reports offering solutions to the economic crisis brought on by these problems. The first addressed public credit, the second addressed banking, and the third addressed raising revenue. The National Bank
In Hamilton’s vision of a strong central government, he demonstrated little sympathy for state autonomy or fear of excessive central authority. Instead, he believed that the United States should emulate Britain’s strong central political structure and encourage the growth of commerce, trade alliances, and manufacturing. In response to the debate over whether Congress had the authority to establish a national bank, for example, Hamilton wrote the Defense of the Constitutionality of the Bank, which forcefully argued that Congress could choose any means not explicitly prohibited by the Constitution to achieve a constitutional end—even if the means to this end were deemed unconstitutional.