1. Hamilton vs. Jefferson

2. Where should power be concentrated?
Hamilton
Federal Government
A strong federal govt. would allow us to become a stronger nation and would fix the problems that existed under the AoC
Jefferson
State & Local Govts.
This gave the citizens more power and would prevent the federal govt. from becoming too powerful like the govt. in GB

3. Should the national govt. be strong?
Hamilton
Yes
This would help us become a better nation and improve our economy
Jefferson No
A strong federal govt. would abuse its power and not act in the best interests of the people

4. How should the Constitution be interpreted?
Hamilton
Loose interpretation
If the Constitution does not say the federal govt. can’t do something than it must be able to do it. Gave the federal govt. more power
Jefferson
Strict interpretation
If the Constitution does not say the federal govt. can do something than it should not be able to do it. Took power away from the federal govt.

5. Should there be a national bank?
Hamilton
Yes
A bank funded by the federal govt. & wealthy private investors would allow the govt. to issue paper money and would use the financial power of wealthy investors to help strengthen the nation’s economy
Jefferson No
This would create an unhealthy alliance between the govt. and wealthy businessmen. Cons. does not allow the govt. to start a national bank so therefore it is unconstitutional (strict interpretation)

6. What should the economy be based on?
Jefferson
Farming
Farming would keep this nation strong due to its favorable climate and massive amount of arable land
Hamilton
Shipping & manufacturing
Future of the nation depended upon industry and manufacturing and companies should be given tax breaks for opening factories

7. How should debt be managed?
Hamilton
Federal govt. assumes both state and national debt
Creditors would then have reason to support the federal govt., wanted to issue new bonds to cover the old ones and pay off foreign debt
Jefferson
Federal govt. pays only national debt & states pay off their own debt
Most southern states had little/no debt so they did not want the federal govt. to pay off northern debt, pay off all debts over time

8. What did he fear? Hamilton Mob rule
A weak central govt. would lead to future mob events like Shay’s Rebellion which could cause the nation to collapse
Jefferson
Absolute power/ruler
A strong central govt. could create another Great Britain where the rights and desires of the people would be ignored

9. Who supported him? Hamilton
Merchants, manufacturers, landowners, investors, lawyers, & clergy (urban dwellers)
Jefferson
“Plain people” – farmers, tradespeople (rural dwellers)

10. Political Party Hamilton Federalists Jefferson
Republicans (Democratic-Republicans)