1. The First Presidency

2. Inauguration
George Washington was inaugurated (formally sworn-in to office) on April 30,1789
He took the oath of office found in Article II of the Constitution, adding the words “so help me God” at the end (every President since has done likewise)
Washington must have had a lot running through his mind as he took office that day
Will this new government we’ve created work? It’s never been done before!
Will other nations of the world learn to respect this new form of govt.?
How will we get $ for our treasury?
How can we strengthen our armed forces?

3. The First Cabinet
Washington knew he would need help to get the job done.
He created the first cabinet (group of presidential advisors)
Originally, there were only 4 cabinet positions (today there are 15)
Secretary of State- Thomas Jefferson
Secretary of Treasury- Alexander Hamilton
Secretary of War- Henry Knox
Attorney General- Edmund Randolph

4. Hamilton’s Economic Plan
Hamilton designed a financial program so that the U.S. Government could pay off all the debts it owed to other countries
They assumed the debts of the individual states
They collected taxes by putting an 8% tariff on foreign imports and an excise tax on whiskey
They created a National Bank to handle federal transactions
They repaid war debts (both domestic & foreign)

5. Taxation Today
Hamilton’s Plan was very different from how the federal government gets its income nowadays
We still have tariffs on goods from certain countries, and excise taxes on things like alcohol and gasoline, but now the Federal Income Tax is the main way the govt. gets its $ (Thank you, 16th Amendment!)

6. Graduated Tax
Currently, we have a Graduated Income Tax, which means the more money you make, the higher percentage goes to the government
10% for lower class jobs, around 25% for middle class, and up to 35% for the wealthy

7. The Flat Tax
Some people support the idea of a Flat Tax, where everyone pays the same % rate, regardless of income (somewhere around 15-20%)

8. The Fair Tax
Others like the idea known as the Fair Tax, in which the federal income tax would be eliminated and replaced with a federal sales tax, so you’re only paying taxes on what you buy, not on how much you make.
The rate would be around 23%, with rebates available for those at or below the poverty level.

9. Taxation Discussion (Small Groups)
Brainstorm pros and cons of different taxation ideas, then do research for HW to supplement your knowledge
Make sure each type of taxation is researched by at least 1 person
Then discuss which is the most fair the next day in class

10. Reaction to Hamilton’s Plan
Just as we debate taxation and economic plans today, there was a lot of debate over Hamilton’s economic plan.
In fact, the first political parties evolved over disagreements related to govt. involvement in banking and assumption of debts.
Hamilton’s party was called the Federalists
Jefferson’s party was called the Democratic-Republicans
*Neither of these parties exist today, despite familiar sounding names

11. Bonus fact! Our capital was moved from New York City to land set aside to build Washington DC (as a compromise for Southern states who had already paid off most of their debts)

12. The Whiskey Rebellion
It didn’t take long for our new government to be put to the test.
Pennsylvania farmers, upset over the whiskey tax, rebelled against the state government
Federal troops quickly put the Whiskey Rebellion down
This set an important precedent- it let America know that the federal government would not permit disobedience of national laws

13. Washington set another precedent
Washington set another precedent. He decided not to run again after serving two terms. It was time to pass the reins of leadership to someone else.

14. Washington’s Farewell Address
Six months before leaving office, Washington spoke to a newspaper publisher- his comments have come to be called his “Farewell Address”.
He commented on several topics he considered important to America’s future
He warned against creating factions (political parties)
He warned against getting into any entangling alliances with foreign countries
He warned against getting into debt.
As you know, some of this advice was heeded for a long time, and some was promptly ignored.

15. Review Questions
GIVE AN EXAMPLE OF A PRECEDENT THAT GEORGE WASHINGTON SET
WHAT WERE THE 4 POSITIONS IN WASHINGTON’S FIRST CABINET, AND WHO HELD THEM?
WHAT WERE THE 4 PARTS OF HAMILTON’S ECONOMIC PLAN FOR OUR COUNTRY?
ASSUME ____________
COLLECT ___________
CREATE ________________
PAY ____________________
NAME OUR COUNTRY’S FIRST 2 POLITICAL PARTIES
LIST 3 THINGS THAT WASHINGTON WARNED US AGAINST IN HIS “FAREWELL ADDRESS”