1. WHY IS THE US CURRENTLY IN DEBT?

2. WASHINGTON’S PRESIDENCY Economic Problems

3. DAILY GOALS 4: Explain the reason’s the nation was in debt at the beginning of Washington’s presidency 5: Understand Hamilton’s economic plan

4. AMERICA’S DEBT 1789  American Revolution leaves the US in great debt… Sound familiar???  Bonds – a Certificate issued by a government for an amount of money that the governments promises to pay back, with interest Who owns these bond? Would you have bought a bond?

5. AMERICA’S DEBT 1789  Speculators – People who invest in a risky venture in the hope of making a large profit What is this similar to today? Is this fair?

6. CAN YOU SEE WHY THIS IS A PROBLEM?

7. PREPARE TO HAVE YOUR MIND BLOWN… http://www.usdebtclock.org/

8. ENTER HAMILTON 1.The US government would assume all federal and state debts 2.The US government would create a National Bank 3.The government would impose a high tax on imported goods

9. THE US GOVERNMENT WOULD ASSUME ALL STATE AND FEDERAL DEBTS  We need to pay our debt in order to maintain integrity  Northerns liked it, Southerns didn’t. Would you have agreed to this?  Compromise

10. US WOULD CREATE A NATIONAL BANK  We needed a place to keep our money!  Seems like a good idea….  Jefferson sees this as unconstitutional… WHY!? Strict interpretation  Elastic clause :Article 1, Section 8 “Congress shall have the power to make all laws which shall be necessary and proper for carrying into execution the foregoing powers…” Loose interpretation

11. THE GOVERNMENT WOULD IMPOSE A HIGH TAX ON IMPORTED GOODS  Tariff – A tax on imported goods  Positives Gain money for the federal government Protect US manufacturers from foreign manufacturers  Negatives Think about the economic differences between the North and South

12. DAILY GOALS REVISITED 1: Explain the reason’s the nation was in debt at the beginning of Washington’s presidency 2: Understand Hamilton’s economic plan 3: Debate how the ideas behind Hamilton’s economic plan would be received today