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He was born to a single mother in the West Indies who earned her living as a shopkeeper and she taught Hamilton his first economic principles. He…
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Download file to see previous pages It also looks at how Alexander Hamilton’s policies wanted to use the wealthy, manufacturers and the US National Bank to turn around the economy that was affected by a series of civil revolutions; as well as why his proposals were criticized. Finally, it discusses the impacts of his policies. Top of Form
Alexander Hamilton was the first treasury secretary of the United States government headed by President Washington (Swanson, 43). When he was appointed the treasury secretary, the United States government was facing hard economic times following the American revolutions. The government was faced with huge debts, inflation and the majority of economic sectors seemed to be doing badly. It is then that President Washington tasked Alexander Hamilton with the duty of stabilizing the United States economy. Alexander Hamilton was to come up with fiscal policies that would revive the economy of the federal government. He advocated for modern capitalism to turn around the United States economy (Hansen, 166).
In his first steps, towards reviving the economy, Hamilton proposed the chartering of the first United States National Bank. The bank’s mandate was assisting the government in coming up with monetary and financial solutions, serving as the main depository arm of the federal government as well as regulating state banks. He also recommended that the outstanding Confederation Debt be funded at face value. The paying of these outstanding state debts would ensure stability and commitment of the government in restoring its economy. To finance the paying off debts, Hamilton proposed an issue of new bonds to investors who would gain profits when the government was able to pat the new bonds (Swanson, 43).
In his approach to financial and monetary policies, Hamilton targeted the wealthy individuals within the US. He wanted to align the business class, manufacturers, creditors and all the wealth with the federal ...Download file to see next pagesRead More
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