1. What was Alexander Hamilton’s plan for the Economy? 7-2 Pgs. 238-242

2. Hamilton’s Basic Economic Plan 1.Deal with the National Debt 2.Gain Revenue for the United States 3.Stabilize the U.S. Banking system

3. 1. Deal with the National Debt The United States owed 11.7 million to other countries and 40.4 million to citizens Hamilton wanted to pay off debt to foreign countries first Gradually repay debt to citizens who bought bonds –Bondholders who sold their bonds would lose out on $ The federal government would absorb each states debt. –Only if capital moved farther south

4. 2. Gain Revenue for the United States Pass a high tariff to both bring in money and help American manufactures and cause Americans to buy American made goods Promote the creation of new American business that would compete with European manufacturing

5. 3. Stabilize the U.S. Banking system Create a national bank for the government to deposit money to –No specific power given to the federal government to create a bank in the Constitution Create a National Mint to issue own money 20 year trial Each state start its own bank