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1. How did Hamilton create economic stability and growth?
1a. Alexander Hamilton is sometimes considered the “patron-saint” of the American School of economic philosophy that basically dominated economic policy in America until the Civil War. A man greatly in favor of government intervention to support business, Hamilton helped to create the United States Mint (the federal body that circulates coinage for the United States to conduct its trade and commerce) as well as the First National Bank of America. Furthermore, through a series of duties, tariffs and excises (particularly on whiskey), Hamilton helped to pay for the federal structure and all his aspirations for a strong national bank and mint. Though very controversial, these steps helped strengthen early American economics.
2. How did Hamilton strengthen the central government?
2a. The greatest examples of Hamilton’s efforts to strengthen the federal government lay in his powerful economic policies. The taxes, tariffs and excises that Hamilton imposes on early American citizens helped bring a lot of money into the central structure, allowing it to pay for necessary growth and federal expansion. Furthermore, Hamilton, along with Washington, established strong federal authority when the two men decided to quell the Whiskey Rebellion in western Pennsylvania with use of the national army. Hamilton was even present on the front lines to see that the revolt was disbanded properly. Finally, Hamilton was the true founder of the American Federalist Party: the party that established federal authority with the first two executive administrations. Thanks to his efforts to rid the nation of the confederacy, America still has a federal structure of government.
3. How did Hamilton diminish the power of the states?
3a. Firstly, Hamilton was one of three authors of the Federalist Papers, a series of publications that persuaded anti-federalists everywhere to switch sides on the debate. His efforts, along with Jay and Madison, helped to ratify the American Constitution: the world’s most sound federal document. By definition, a federalist structure (in particular, the structure created by the Constitution) is one in which states rights are secondary and are overpowered (in most cases) by the legislation enforced on the national, or federal, level. Furthermore, Hamilton used his authority as Secretary of the Treasury to impose strong taxes, duties, and excises; none of which the individual states had the ability to repeal or alter in any way.