1. Washington as President

2. Political/Financial Debate
Growing national debt
How should the constitution be interpreted?
Disagreed about the power of government

3. Gross Domestic Product (Output) Debt/Population ($ per person)
Hamilton's Financial Plan
Hamilton presented a 3 step program to improve finances
#1: Pay off all war debt
Combine all federal & state debts into a single national debt = $77 million
Year
Gross Domestic Product (Output)
Total
Population
National Debt
Debt/Population ($ per person)
1790
$240,000,000
3,930,000
$75,463,476.52
$19.20
1791
S250,000,000
4,050,000
$77,227,924.66
$19.07
1792
$270,000,000
4,170,000
$80,358,634.04
$19.27
1793
$300,000,000
4,300,000
$ 78,427,404.77
$18.24
1794
$350,000,000
4,430,000
$80,747,587.39
$18.23
1795
$420,000,000
4,560,000
$83,762,172.07
$18.37
1796
$470,000,000
4,700,000
$82,064,479.33
$17.46
1797
$450,000,000
4,840,000
$79,228,529.12
$16.37
I know there is a lot of info here, but explain to there is a lot of illicit conversation. You can talk to them about GDP and how it is the amount of stuff we produce (free from the government, they do not have anything to do with it). Also, see if they can track the trends of the GDP (up) and debt (steady). And, the last number is important and what I did with the Pre-AP kids on this chart is tell them, if everyone gave the amount per person to the government we could pay off the debt. But the average yearly income at that time was $20-$30, so that was impossible.

4. #2: Raise government revenue
Propose a tariff to encourage American industry (manufacturing) and make economy stronger
Other new taxes strengthen federal financial power
New tax on whiskey proposed
The taxes would ensure a steady flow of income to the government

5. Give government a safe place to keep money
#3: Congress should create a national bank
Bank Plan
Businesses would be helped through loans
Give government a safe place to keep money
Bank would issue bank notes (paper money used as currency)

6. Plan Creates Conflict Plan would strengthen the federal government
Hamilton believed in a loose interpretation
A very broad and flexible view of power
Doing what is “necessary and proper”

7. Plan Creates Conflict
Thomas Jefferson and James Madison felt it gave too much federal power
Called the plan unconstitutional
Argued for a strict interpretation of the Constitution
Constitution does not mention a bank so government cannot create one

8. COMPROMISE Use Hamilton’s financial plan
Create a new Southern capital called City of Washington, District of Columbia