First Political Party System
Theme…. Strength of the national government vs. the strength of the states Leads to first political party system (Federalists vs. Republicans)
Election of 1789 George Washington, John Adams Electors cast 2 votes Issues RI, NC, NY did not vote
Precedents set by Washington Strong executive Respect for the concept of separation of powers Establishment of an independent cabinet Partisan appointments Two-terms Judicial review
Washington Administration Credit & debt the focus Alexander Hamilton: secretary of Treasury Full funding- pay off debt completely PLUS interest Assumption of state debt Establishment of a National Bank Establishment of protective tariff Tax to prove power
Hamilton’s Goals Strengthen national government Win support of wealthy elite Protectionism- to protect American industry Maintain a public debt
Hamilton’s Program Full funding WHY CHOOSE THIS? Foreign debt- 11.7 M Domestic debt- 42.4 M State debt 21.5 M WHY CHOOSE THIS?
Assumption of State Debts WHY???? First Bank of the US Depository for Federal funds 10 M in the bank Deposits loaned out to finance commerce and industry Elite have a stake in national government
Protectionism Revenue vs. protective tariff 1789: first tariff (8%) revenue tax Hamilton favored protective tariff Who benefits???? Excise tax policy Excise tax on whiskey. WHY? Flow of tax Leads to the Whiskey Rebellion
Review of Hamilton’s Economic Plan Most largely untouched No sense of unity Increased sectionalism Direction of country- proactive rather then reactive
Man in the natural state Hamilton Jefferson Man will do wrong Governing aristocracy of birth and merit Stability of England Strong national government Favored industry and commerce Government in the hands of the people is wrong Man will do right Educated common man can govern Affection for “pure” democracy Limited national government Favored small farmers Wisdom of the common man
Natural rights of Man Hamilton Jefferson Stability Rebellion isn’t necessarily a bad thing
Growing Sectionalism Differing economic systems between North and South Hamilton's discriminatory economic plan Funding Assumption Excise tax
Strict vs. Loose Constructionism Jefferson: STRICT- PROPER Hamilton: LOOSE-NECESSARY Elastic clause (Article 1, Section 8) The Congress shall have power …To make all laws which shall be necessary and proper for carrying into execution the foregoing powers, and all other powers vested by this Constitution in the government of the United States, or in any department or officer thereof.
Federalism Split power between state and national level Hamilton: strong national government Jefferson: favored more power with the people and states Party alignment today Republicans: Hamiltonian in economics/Jeffersonian in federalism Democrats: Jeffersonian in economics/Hamiltonian in federalism