Government’s Role in the Economy Hamilton vs. Jefferson Government’s Role in the Economy

Debt and deficit spending Founder What would they think? Necessary/Proper clause and General Welfare vs Amendment 10? Agricultural or Industry Taxes National Bank Federal Reserve? Debt and deficit spending Thomas Jefferson Alexander Hamilton

Strict vs. Loose interpretation

"They are not to do anything they please to provide for the general welfare.... [G]iving a distinct and independent power to do any act they please which may be good for the Union, would render all the preceding and subsequent enumerations of power completely useless. It would reduce the whole instrument to a single phrase, that of instituting a Congress with power to do whatever would be for the good of the United States; and as they sole judges of the good or evil, it would be also a power to do whatever evil they please.“ -- Thomas Jefferson

"Congress has not unlimited powers to provide for the general welfare, but only those specifically enumerated." --Thomas Jefferson, Letter to Albert Gallatin, 1817

The terms “General Welfare" were doubtless intended to signify more than was expressed or imported in those (words) which Preceded. Alexander Hamilton report of Manufactures December 5th, 1791

Agriculture vs. Industry Rural vs. Urban

Industry is increased, commodities are multiplied, agriculture and manufacturers flourish: and herein consists the true wealth and prosperity of a state.- Alexander Hamilton Report on the National Bank 1790

"Encouragement of agriculture and of commerce as its handmaid I deem [one of the] essential principles of our government, and consequently [one of] those which ought to shape its administration." – -Thomas Jefferson: 1st Inaugural, 1801. ME 3:322

Taxes

As to Taxes, they are evidently inseparable from Government As to Taxes, they are evidently inseparable from Government. It is impossible without them to pay the debts of the nation, to protect it from foreign danger, or to secure individuals from lawless violence and rapine. - Alexander Hamilton

"Taxes should be proportioned to what may be annually spared by the individual." --Thomas Jefferson to James Madison, 1784. FE 4:15, Papers 7:557

National Bank

"The tendency of a national bank is to increase public and private credit. The former gives power to the state, for the protection of its rights and interests, and the latter facilitates and extends the operations of commerce among individuals. Hamilton to Morris 1781

"The incorporation of a bank and the powers assumed [by legislation doing so] have not, in my opinion, been delegated to the United States by the Constitution. They are nor among the powers specially enumerated." --Thomas Jefferson: Opinion on Bank, 1791.

Debt and Borrowing

As on the one hand, the necessity for borrowing in particular emergencies cannot be doubted, so on the other, it is equally evident that to be able to borrow upon good terms, it is essential that the credit of a nation should be well established. Hamilton A National Debt if not excessive, will be to us a National Blessing. -Hamilton

"I sincerely believe... that the principle of spending money to be paid by posterity under the name of funding is but swindling futurity on a large scale." --Thomas Jefferson to John Taylor, 1816. ME 15:23 Loading up the nation with debt and leaving it for the following generations to pay is morally irresponsible. Excessive debt is a means by which governments oppress the people and waste their substance. No nation has a right to contract debt for periods longer than the majority contracting it can expect to live. - Thomas Jefferson

Hamilton vs Jefferson http://www.youtube.com/watch?v=notJuFGXQ9w

Who’s ideas have been most adopted by the Government since the Constitution? Predict what Alexander Hamilton would say about our current economic situation. Predict what Jefferson would say about out current economic situation. What current political parties do you think these men would have joined? Explain your answer

Economic quotes from the founding fathers http://www.famguardian.org/Subjects/Politics/ThomasJefferson/jeff1320.htm http://foundersquotes.com/founder-author/alexander-hamilton/ http://www.famguardian.org/Subjects/Politics/ThomasJefferson/jeffcont.htm