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

2. 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

3. Strict vs. Loose interpretation

4. "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

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

6. 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

7. Agriculture vs. Industry
Rural vs. Urban

8. 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

9. "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, ME 3:322

10. Taxes

11. 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

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

13. National Bank

14. "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

15. "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.

16. Debt and Borrowing

17. 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

18. "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, 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

19. Hamilton vs Jefferson

20. 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

23. Economic quotes from the founding fathers