He chose Alexander Hamilton to be his secretary of the treasury. Hamilton was a Federalist. Federalists wanted a strong, active government. They also wanted to promote financial success and support American industry.
Washington chose Thomas Jefferson to be his secretary of state. Jefferson was a Republican, which meant that he wanted the government to have limited power. He also wanted an economy based on agriculture rather than industry.
Political parties were emerging in the country. Some agreed with the Federalists and their vision for a strong central government that supported industry. Others agreed with the Republicans, who wanted a small government and an agrarian lifestyle. Washington chose men from both of these camps to advise him in his cabinet, and from the beginning, he struggled to settle the disagreements between them.
Hamilton’s master plan
After the war, each state in the country had large debts. Under the Articles of Confederation, each state would have to pay back these debts on their own. Some states put high taxes on their citizens, which provoked rebellions, like Shays’ Rebellion.
Hamilton thought the states shouldn’t have to do this on their own. He thought the central government should pay back the war debt instead. Hamilton believed the government should take an active role in supporting the economy of the young nation. He developed an economic plan that reflected his Federalist ideas. This plan had three main parts.
Portrait of Alexander Hamilton. Source: Wikimedia Commons, John Trumbull, White House Collection
The first part of Hamilton’s plan was for the federal government to take on the individual states’ debts from the Revolutionary War and be responsible for paying them back. The country was desperately in debt. Freedom really is not free, it turns out. The debts from the war totaled about $75 million, with the individuals owing about $25 million. Hamilton thought the national government should be responsible for paying this back.
Second, Hamilton wanted Congress to create a central bank—a bank of the United States. This bank would make it possible for the US government to pay back the massive war debts.
Third, Hamilton’s plan meant the federal government needed a way to make money. In 1791, Hamilton proposed a federal tax on whiskey and some other goods. This meant people would pay a tax to the government whenever they produced, sold, or consumed whiskey.
Explanation:
He chose Alexander Hamilton to be his secretary of the treasury. Hamilton was a Federalist. Federalists wanted a strong, active government. They also wanted to promote financial success and support American industry.
Washington chose Thomas Jefferson to be his secretary of state. Jefferson was a Republican, which meant that he wanted the government to have limited power. He also wanted an economy based on agriculture rather than industry.
Political parties were emerging in the country. Some agreed with the Federalists and their vision for a strong central government that supported industry. Others agreed with the Republicans, who wanted a small government and an agrarian lifestyle. Washington chose men from both of these camps to advise him in his cabinet, and from the beginning, he struggled to settle the disagreements between them.
Hamilton’s master plan
After the war, each state in the country had large debts. Under the Articles of Confederation, each state would have to pay back these debts on their own. Some states put high taxes on their citizens, which provoked rebellions, like Shays’ Rebellion.
Hamilton thought the states shouldn’t have to do this on their own. He thought the central government should pay back the war debt instead. Hamilton believed the government should take an active role in supporting the economy of the young nation. He developed an economic plan that reflected his Federalist ideas. This plan had three main parts.
Portrait of Alexander Hamilton. Source: Wikimedia Commons, John Trumbull, White House Collection
The first part of Hamilton’s plan was for the federal government to take on the individual states’ debts from the Revolutionary War and be responsible for paying them back. The country was desperately in debt. Freedom really is not free, it turns out. The debts from the war totaled about $75 million, with the individuals owing about $25 million. Hamilton thought the national government should be responsible for paying this back.
Second, Hamilton wanted Congress to create a central bank—a bank of the United States. This bank would make it possible for the US government to pay back the massive war debts.
Third, Hamilton’s plan meant the federal government needed a way to make money. In 1791, Hamilton proposed a federal tax on whiskey and some other goods. This meant people would pay a tax to the government whenever they produced, sold, or consumed whiskey.
