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hamilton and national debt

1) Hamilton's "plan was to shape the fiscal policies. . . . to favor wealthier groups." Why was this his intention? What were the liabilities in this approach?

Hamilton wanted the fiscal policies to favor the higher classes because he felt these wealthy groups would lend the government money and would gain support from the important higher social groups. He believed that it would help give the federal form of government respect and confidence in society.

The liabilities in this approach would be that the wealthier groups may not want to lend Congress money, even after having the wealthier groups being favored in the tax policies. Also, the non-wealthy groups will be unhappy with the fact that despite the wealthier classes excess of money, the poorer classes still weren't favored in the tax policies. The lower classes may not have confidence in the government.

5) Was Hamilton wise in assuming the state debts? Explain your reasoning.

Hamilton was wise in assuming the state debts because there were more upsides to the motion than there were downsides. Even though Congress had to pay a lot of money for the national debt, just the fact that society will have gained trust in the government was enough. They will als


Jefferson was a strict constructionist because he based most of his arguments on the Tenth Amendment in the Bill of rights. This Amendment stated that "all powers not delegated to the United States by the Constitution, nor prohibited by it to the states, are reserved to the states, or to the people." The power to run a national bank was not one of the powers delegated to the United States by the Constitution. This was written straight out and it is easily seen that it says that the US cannot just make a bank without the consent of the people. This is why Jefferson was a strict constructionist. Unlike Hamilton, his Amendment he was following was a sure thing.

11) In their debate on the national bank, how was Hamilton a "loose constructionist" and Jefferson a "strict constructionist" when considering the Constitution?

Hamilton was a loose constructionist because he based most of his arguments on Article 1, Section VIII, paragraph 18. This article in the Constitution stated that Congress has the power "to make all laws which shall be necessary and proper for carrying into execution the foregoing powers. . . ." Hamilton "loosely" interprets the Constitution because this law is not a sure thing. How should a country decid

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